Trade and Agriculture Policy

Abstract

Through trade agreements and inflation, tariff levels have been reduced to about one fourth the 1931-1934 levels. These advances toward a freer trading position have been hindered by the rapid growth in import quotas. Some sectors of American agriculture have been in the forefront of those seeking import limitations. The use of price supports in implementing American agricultural programs tends to en courage imports and discourage exports. In addition, price supports have stimulated new programs to encourage exports; such as by transferring purchasing power abroad, or by reduc ing export prices. These programs range from special loans, sales for local currency (Public Law 480), to export subsidies. Such attempts to insulate domestic agricultural prosperity from the world market divert individual attention and reduce the pressures which otherwise might strongly press for an ac tive and liberal trade policy. Similarly these programs have lowered the influence of the foreign protests, by introducing the additional opinions of those benefiting from special sales. The present complex of programs and policies has quieted the voices of many of those strongly proposing freer trade in order to lower costs.