The Gisborne Herald. IN WHICH IS INCORPORATED “THE TIMES." GISBORNE, MONDAY, MAY 26, 1947. WOOL IMPORT DUTY IN UNITED STATES

Gisborne Herald, Volume LXXIV, Issue 22339, 26 May 1947, Page 2

The Gisborne Herald. IN WHICH IS INCORPORATED “THE TIMES." GISBORNE, MONDAY, MAY 26, 1947. WOOL IMPORT DUTY IN UNITED STATES

rpHE United States delegation to tlio Cloncva trade conference seems to have been a left hand which did not know what its right at home in America was doing. How little Mr. William Clayton, head of the delegation, knew of the full intention of the powerful wool interests to make trouble was first revealed when he said, shortly after his arrival in Geneva, that American wool producers were not particularly preoccupied with a wool tarill. so long as they sold their clip at a satisfactory price. Later Mr. Clayton found himself in the awkward position of knowing that. Congress threatened a flat violation of the principle that nations should not raise their trade barriers while an international effort was being made to reduce them. Clearly he was expected to use the proposed United States import fee of 50 per cent on wool as a bargaining weapon. . The depressing outcome up to the present is that the House of Representatives in Washington lias passed, by the substantial majority of 151 votes to 63, a Wool Bill which authorises the President to impose a 50 per cent ad valorem import fee on foreign wools. Although the existing duty of 34 cents a pound is not shutting out the British Dominions’ wool at present, it: has worked otherwise in the past and may do so again in the future. To lie met, instead of by a reduction, with a proposal to add a further 50 per’ cent import “fee” is as dismaying as it was unexpected. Indeed the imposition of a punitive duty of this sort not only threatens to be a serious blow to British Commonwealth trade relations with America but also runs counter to the Administration s avowed policy of encouraging multilateral trade. Presidential Veto Possible.

It is doubtless because of its eagerness to carry out its multilateral trade policy that the Administration, through use of the Presidential veto, is expected to intervene. But a hard and perhaps bitter fight is looming up between the Truman Administration and Congress. Led by the Repiiblicans, American big Business” is making its influence felt in a manner which, if unchecked, will destroy world confidence in United States ability to play an influential part in leading the nations into the channel of trade harmony—one of the main safeguards of future peace. After the promising start made by America in shaping post-war reconstruction this blatant violation of the first principles of wise tariff readjustment comes as a big disappointment . It may disrupt the whole of the Geneva trade discussions and will certainly provide Leftist critics of America with a clear target for their cynicism. _ The proposed duty, however, lias been strongly criticised in the United States itself. Because of their relatively low cost and high quality, woollen fabrics have made great headway in popular favour in the United States since the war. New processes have developed attractive lightweight materials admirably suited to American conditions and the public response has been immediate. These gains will soon be lost if the American manufacturers were to be largely limited to the qualities of wool grown within the country. The major cause of the difficulties in which the American producer finds himself today lies in the relatively low standard ot his industry. In development it lags far behind the cuiicnt standard for sheep-breeding and wool production _ m either Australia or New Zealand. Before the full story is told the manufacturers of the United States and strong sections ot the purchasing public may have something influential to contribute to the discussions. Threat From Synthetic Fibres.

Unless the new tariff measure, which constitutes a virtual embargo on imported wool, is vetoed by the President, the American producers of competing commodities such as cotton and artificial fibres will be among the chief beneficiaries. Apart from the immediate benefit to the Dominions and the Empire s dollar pool, the growth in the popularity of good wool is benefiting woolgrowers the world over in the battle against synthetic fibres. From tins point of view the growers of wool in the United States, rather than attempting to make a close preserve of the American market would be well advised to try reaping the much more substantial long-term advantage by joining forces with’wool producers m other countries. If they are behind the. present tariff measure they •are adopting a very shortsighted policy. : , The still broader issues of the Geneva trade conference must also he taken into consideration. New Zealand and South Africa are just as interested as Australia in securing a reduction ot the American tariff and in the long run the total weight of opinion m these three Dominions is something which not even America can afford to reject as inconsequential. American supporters of the reciprocal trade programme recently expressed the view that such a bill would seriously reduce the chances of the United States breaking down the British Empire preference system Ihe possibility that some form of scaling down of Empire preferences would have to be instituted in the interests of international trade has not been overlooked in far-seeing British circles, but the passing 0 f the American Wool Bill means that the British Commonwealth is released from any obligation whatever to consider this step. Unless the anticipated Presidential veto saves the day it may be a mere waste of time worrying any more about the Geneva conference.