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Export Legislation Deserves Our Consideration

Click to see original imageThe American export policy structure needs an overhaul. In the face of skidding competitive capability on world markets, Congress has acted on a number of trade measures to stimulate exports. But the approach has been piecemeal .. and the problem lingers. “We see our decline in the persistent negative trade balances. in our loss of overseas markets. and in 0 u r d ro p in employment.” says S. William V. Roth, R-Del. The cumulative U.S. trade deficit continues to grow. A $25 billion 1980 deficit brought our total deficit in the trade goods to $100 billion for the last four years. “While the $35 billion surplus in 1980’s services account was strong enough to outweigh our deficit in goods, we cannot ignore the damaging effect to our economy of over-all declining international come petitiveness,” Roth said. Now a major bipartisan step toward solution is being taken – introduction of “The National Export Policy Act of 1981′” in both houses of Congress. In the House. it’s being sponsored by Rep. Les AuCoin. D-Ore. and 27 other congressmen. Senate sponsors besides Roth and Baucus. Montana; Goldwater. Arizona; Cranstan. California; Inouye. Hawaii; Percy. lllinois; Heinz. Pennsylvania; Bensten and Tower. Texas; Chafee. Rhode Island; Helms. North Carolina; Randolph. West Virginia: and Riegle. Michigan. The U.S. share of world trade in manufactures fell from 25 percent to 16 percent from 1956 to 1979. As the w0rld’s economies emerge – particularly in the Pacific Basin and Latin America – the U.S. is missing opportunities in sell goods to those countries. Competitors in Japan. West Germany. and newlyindustrializing countries are overtaking us in the race to develop and supply new markets. The January merchandise trade deficit was the second or third largest monthly deficit ever. totaling $5.4 billion. Oil. auto. steel and consumer electronic imports are contributing most to the eroding U.S. trade position; but other product areas are involved also. D a t a f r o m th e Georgetown Center for Strategic and International Studies illustrate the economic impact of foreign trade; Each $1 billion increase in exports can build employment for 40.000 people and generate a $2 to $3 billion increase in the gross national product. The National Export Policy Act of 1981 is intended to revise trade laws;. promote positive attitudes in business, labor and government; stimulate creativity and aggressiveness in the global arena: improve packaging of American goods and services; and gear ; ‘icim ‘ strengthen the economy. ‘1’here’s no doubt that we must turn our attention to restoring American preeminence in world trade. The new export policy measure could be the key step.