World Bank Document

IMTATIONAL 3MIK FORn- ECONSTRUCTIOI AI DEMOPMEi COPY Public Disclosure Authorized TO 0-17 - AMERIGAN TPADE POLICIES AFD THE WORLD 001,TO4Y Public Disclosure Authorized EERFACTS FROM THE H1ARINGS BWO1 THE FINACE COMMITTEM OF THi U. S. SENATE ON THE TRAD AGRM T TS =XTESION ACT OF 1951 (FERUARY -APRIL 1951) Public Disclosure Authorized Public Disclosure Authorized The following extracts illustrate the nature of the opposition to larger imports into the United States and were compiled in connection with the discussion in 30-17, Aerican Trade Policies and. the World MconoMy. July 9, 19539 prenared by K. Varvaressos and R. Zafiriou, July 22, 1953 TABLZ OF CONTETS Paoe No, Resolution No. 4. Protest Against Foreign-Made Goods (By Delegate William Nagorene, Wisconsia State Federation of Labor) 1 Resolution No. 11. Unfair Foreign Competition (By Delegates Harry H. Cook, Arthur J. O'Hara, Ivan T. Uncapher, Ernest A. Merighi, American Flint Glass Workers' Union) 1 Statement of Edward F. Vonderahe, Manager, Glove Division, Gloversville Knitting Co., Gloversville, N.Y.; Accompanied by Edwin G. Martin, Attorney, American Knit Handwear Association, and Harry Moss, Jr., Secretary, American Knit Handwear Association 3 Statement of the Forstmann Woolen Co., Passaic, New Jersey 3 Statement of E. L. Torbert, Chairman, Foreign Trade Committee, Vitrified China Association 5 Statement of J. J. Stein, Executive Secretary, California Art Potters Association 10 Statement of Gordon H. Harrower, Chairman, Committee on Foreign Trade, American Cotton Manufacturers Institute, Pomfretv Conn. 12 Statement of Robert N5. Kastor, Camillus Cutlery Co., Camillus, N.Y., Accompanied by Lewis A. Pinkussohn, Jr., Camillus Cutlery Co. 1,3 Brief in Opposition to the Inclusion of Woven Wire Cloth, Paragr'iph III. Tariff Act of 1930, in the Forthcoming Reciprocal Trade Agree- ment Negotiations at Torquay, England 16 Statement of Walter W. Cenerazzo, National President, American Watch Workers Vnion 16 Statement of Harold D. Rhynedance, American Optical Co., Buffalo, .TY. 19 Statement of Arthur Besse, President, National Association of Wool Manufacturers 19 Statement of Abrabam Mittenthal, Director, National Authority for the Ladiest Handbag Industry 21 Statement of H. L. Coe, Representing Bicycle Institute of America, Inc. 22 Statement of John Breckinridge, Representing Northwest Nut Growera 27 Views of American Fountain Pen Industry, Brief Submitted to the Committee for Reciprocity Information, Foreign Trade Agreement Negotiations With Several Foreign Nations at Torquay, England (By Karl D. Loos and John Breckinridge) 30 Page No. Statement of John Breckinridge, Representing the Fountain Pen and Mechanical Pencil Manufacturers Association, Inc. 32 Statement of Hon. Cleveland M. Bailey, a Reresentative in Congress from the State of West Virginia 33 Letter to Chairman of Finance Committee, United States Senate, from Terry' s Sewing Machine Company, Passaic, New Jersey 34 Pae 143 RESOLUTION NO. 4. PROTEST AGAIRST FORMIGN-MADE GOODS (By Delegate William Nagorane, Wisconsin State Pederation of Labor) Whereas organized labor, during the past decade, has made wonderful strides of progress and has become an effective force in the economic and political field, and Whereas the right to join a labor organization for security as to wages, work- ing conditions, and otherwise is no longer a question of form but of necessity to bargain collectively, and second to this to demonstrate a cooperative spirit for ccl- lective buying for union-made and union-label products which can be had for the ask- ing; to ignore this in practice is to disregard a condition of union membership and will fail to imDress merchants of its value as a commercial asset, and Whereas certain American industrial plants are confronted ith a new menace by imports of foreign-made commodities, especially shoes produced by low-wage conditions, and in some instances slave labor, that may, if not checked, ultimately demoralize, by unfair comietition, the shoe industry and shatter the economic status of thousands of shoe workers, and Whereas Boot and Shoe Workers Unions have made overtures in the form of written protest to congressional Representatives at Washington, D. C., seeking relief, and Whereas we are officially informed that there are approximately seven million AFL organized vorkers plus members of their immediate families in the United States with a vast buying power for union-made and union-label merchandise, which if used, intelligently can prove a dominant factor and discourage to some extent the purchasing of foreign-made goods which carry no union stamp or union label: Therefore, be it Resolved, That le cannot emphasize too strongly the necessity of making special efforts for increasing the demand for union-label goods, union house cards and service buttons, and request the officers of the American Federation of Labor to use every method they deem advisable to stress the importance of purchasing union-label merchandise, and be it further Resolved, That the American Federation of Labor in convention assembled at Houston, Tex., go on record protesting the influx of foreign-made goods from European and Asiatic countries ithose low cost of production is a serious threat to the wage rates established by the American Federation of Labor. Referred to comittee on resolutions. RESOLUTION NO. 11. UW'AIR FOREIGN COMPETITION (By Delegates Harry H. Cook, Arthur J. O'Hara, Ivan T. Unca her, Ernest A. Merighi, American Flint Glass Workers' Union.) Whereas lower wages than those prevailing in the United States account for the principal comoietitive advantage enjoyed by foreign countries when they ship dutiable merchandise into our domestic market, and mp2 Whereas these lower wage scales permit dutiable goods to be sold at lower prices in this country than our own producers can meet without reducing wages or cur- tailing emnloyment, and Whereas copetitive imported goods that derive their salea advantage from lower wages are as destructive of our own labor standards as were sweatshop oerators in this country before the adoption of a national minimum wage, and Whereas our labor organizations have no means of organizing the workers over- seas in an effort to raise their standards and our minimum wage laws do not extend beyond our own countryg and Whereas it is no more necessary that foreign exporters have a cometitive advantage derived from low wages in order to sell in this market than it is for sweatshop operators to make a regular practice of grossly underselling fair employers in order to compete with them, and Whereas a healthy import trade can be created upon a basis of fair cometition and can, in fact, thus be expanded, just as the elimination of sweatshops in the domestic economy contributes to healthy economic expansion, and Whereas limitations on imports need not be restrictive in order to create competitive parity but on the contrary, by creating the basis of fair comnetition, would contribute to the growth of trade in the international field no less than fair competition does in the domestic, and Whereas over 60 percent of the imports into this country are now and have long been free of duty because they represent goods in the production of which other countries enjoy a natural advantage of climate, soil or resources and which are com- plementary to, rather than competitive with, the output of our own factories, and Whereas the remaining 40 nercent of competitive imports, if uninmeded in any way, would leave our workers at the mercy of low-wage rivalry, a process that would have only one ultimate effect, namely, the impoverishment of our labor force, and Whereas many members of unions affiliated with the American Federation of Labor bnow from direct and bitter experience the disastrous consequences of low-wage foreign competition which has not been properly offset by a rate of duty or other protective measure to insure its fairness: Therefore, be it Resolved, That the American Federation of Labor, while fully recognizing the many ecor omic benefits of a healthy foreign trade, declare its disapproval of such competitive imports as derive their competitive advantage from low wages prevailing abroad, unless this unfair advantage is appropriately offset or guarded against to assure competitive parity; that the undermining of labor stnrards through wage competition on an international scale cannot be accepted as a legitimate form of economic improvement; that it is not necessary, as a condition of selling successfully in the United States, to offer goods at prices that substantially undercut the market; that the most healthy and voluminous trade can be built around fair comnetitive methods rather than seeking to base it upon price advantages that threaten loss of employment and reduction in wages; and finally that the American Federation of Labor express its concern over further tariff reductions that will expose our workers to unfair competition from foreign wages and thus undermine the wage standards built up in this country over the years. Referred to committee on resolutions. Pae 203 STATZ4qET OF DWARD F. VOIDRAHE, MAAGER, GLOVE DIVISION, GLOVERSVILLJE DITTI-0G CO., GLOVERSVILLE, N.Y.; ACCOMPANIED BY EDWIT . MARTIN, ATTOR7Y, AMERICAN LNIT HAnWEAR ASSOCIATION, AND HARRY MOSS, JR., SECTT.ARY, AMERICAN KNIT HANDWAR ASSOCIATION MR. VO1DERAE ... This countryls tariff rates have now been reduced so far that they are, on the average, among the lowest in the world. Imported goods are now sold throughout the land, and some of the largest advertisements in our magazines ex- .tol the merits of foreign merchandise. In this connection it is interesting to note that, in almost every instance in our field, it is the larr price of the imported product that is emphasized. In spite of all that may be said to the contrary before this committee, it is really to you that small industries like ours must turn to see that our interests are protected. Our industry is not against foreign trade or trade agreements as such4 We believe in trade, but we do not believe that our industry, or most small industries, can survive unrestrained competition frmlow-wage countries.

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