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Trade Deiicit Foes Guin Edge

Click to see original imageThe United States has been losing its punch in world trade – and there’s a growing national mood to reverse the trend. Last year the U.S. experienced a staggering $24 billion trade deficit. Only three surpluses have been recorded on the international market in the last decade. According to Washington Report, weekly publication of the United States Chamber of Commerce, several congressionally ordered reports now in the hands of President Carter analyze how Uncle Sam has slipped in ability to compete with other nations. Our share of total world exports declined from 18 percent in 1970 to 14 percent last year, reported Labor Department analysts, In the same years the American share of world exports of manufactured goods fell from 21 to 17 percent. Analysts found that since the early 1960s, the U.S. has slipped from first to sixth among nations in the annual rate of growth of capital per worker. Robert A. Flammang, economics professor at Louisiana State University, points to several policies which contributed to the $24 billion trade deficit last year, including: Slow productivity growth in the U. S.; government supported export programs by foreign competitors: fluctuations in the foreign exchange rate; and rapid emergence of the industrial capacity of Japan, Western Europe, and some newly – industrialized countries. Congress, the White House, government agencies, and private institutions including the U.S. Chamber are formulating proposals aimed at improving trade posture. These moves are commendable as long as they safeguard American security as well as industries and payrolls vital to the economy. As for security, Sen. Jolm W. Warner, R-Va. has expressed deep concem in the Senate about the “considerable amount of strategic technology that has been flowing to the Soviet Union through the poorly – administered export policies of the Commerce Department.” Wamer continued: “For too long the United States has been supplying the Russians with equipment and technical know-how critical to development of their military. I along with Sens. Harry Byrd, I-Va. and Wil-liam Cohen, R-Me. advocated much tougher trade policies at hearings by the Senate Armed Services and Commerce committees.” Sen. Jake Garn, R-Utah, ranking minority member of the Senate Banking Committee which has jurisdiction over the U.S. export administration has introduced legislation (S. 2606) for more stringent controls on east-west trade. In Warner’s words, the bill would help “protect what little technological advantage this country has left over our main adversary, the Soviet Union.” Gam’s bill would remove the Office of Export Administration from the i Commerce Department and make it the core of a new independent Office of Strategic Trade – free from export promotion bias of the Commerce Department. ‘ Hearings on the measurt took place last week. On the economic fronti the ailing steel industry, as a prime example, has been hurt by failure to enforce trade laws to ensure fag competition. Also, the au industry has suffereg tremendously through failures to apply the rul equally among tradin partners. Rep. James J Blanchard, D-Mich reported in Congress th other day that Japanes car imports continue V ow while some 300,0Q 58. auto workers and thousands in related ini dustries are on indefinitt layoff. , Let’s expand trade, course. But in planning 4 new program, let’s also bolster enforcement of faigtrade laws and safeguard not only national security but the valuable industries and jobs on which the peo ple of this country depend.