Hon. Jere Cooper (D-Tenn.), Chairman of the Ways and Means Committee,
has assured the President that H.R. 5550 will come up for consideration
very early in the 2nd Session of the 84th Congress.
ed to tie Com'
* OTC Offspring of the ITO
t of 1930, »'
ts), is hereby
following ne* ' *
drawn up W
Bent on Tariff*
*' was hatched out iii the ninth session of GATT
"eld in Geneva late in 1954 and early 1955. It is the result
j ot a revision of the General Agreement. The OTC was
J Revised to take over the administration of GATT.
, "Why was a new name necessary? Why was the title
■ jnternational Trade Organization' dropped? Was it done
deliberately as an act of concealment? Was it so that the
Public would riot recognize the character of the new
' organization? Why were the innocent words 'trade coop-
I eration' bestowed on an organization that is designed
' consciously through built-in mechanisms to evolve into
' dn lnternational trade-governing body?"
Ihe above statements and questions are those of
u- R. Strackbein, Chairman of the Nation-Wide Com-
' iinttee of Industry, Agriculture and Labor on Import-
F*POrt Policy, published in his treatise on tariffs and
trade, entitled ITO, GATT and OTC, The Grand Goal of
ement refcrrf I the Free-Trade Cabal . . Mr. Strackbein states below
llls views on:
NEW ISSUES ON THE TARIFF FRONT
IN THE long course of American tariff history, the
treatment of the tariff, including the manner of
changing particular rates and administering the law,
ave taken new turns from time to time.
For more than a century Congress itself wrote or
revised t\,~ ..„_.-rx • i • _ ...,.1, _i ««„ ,<,.-.,lie TIip
y for the \*T
,f the expend
i as determine
i by the Unit"1
tion for Ti"'"
d States repf"
mates, and »F
t9, as amen,
n hy the XlM
ised the tariff in keeping with election results. The
ctual work of revision was done principally in the Ways
and Means Committee of the House and the Finance
Committee of the Senate.
I' Frorn 1910 on, the need for an expert commission to
v'se Congress on the technical aspects of the tariff
x% as recognized and such a board was set up in the Taft
JjMministration. It was, however, not until 1922 that the
■a lit Commission was given authority to recommend to
In C ^'res'c'cnt actual changes in rates. This was made
l> .hie by the delegation of power by Congress to the
esldent Such a delegation was necessary since Con-
(Continued on Next Page)
Facts Forum News, February, 1956
THE OTC n
and Its Relation to the GATT
Reprinted from TRADE TALK, a Special Supplement
issued on Organization for Trade Cooperation, published by the Committee for a National Trade Policy.
ON MARCH 21, 1955, Assistant Secretary of State
Samuel C. Waugh signed, on behalf of the United
States, several documents which represented the
results of a thoroughgoing review of the General Agreement on Tariffs and Trade. This review had a dual purpose: first, to simplify and strengthen the "trade rules"
of the General Agreement and secondly, to provide permanent machinery for its administration. This latter was
accomplished by the agreement establishing the Organization for Trade Cooperation, which Mr. Waugh signed
subject to the concurrence of Congress.
The distinction between the general provisions or
"trade rules" of the GATT on the one hand, and the OTC
on the other, should be made clear. The General Agreement with its trade rules has the same status as any of
the bilateral agreements entered into since 1934 under
the authority of the Trade Agreements Act and under
that authority it need not be submitted to the Congress
The President, apparently on the basis of a policy
decision, is submitting the OTC, the permanent machinery for administration, to the Congress for its approval.
As Secretary Dulles stated to the Senate Finance Committee, this is being done for reasons of courtesy and
propriety, not because there is any conviction that it is
a legal requirement.
The General Agreement on Tariffs and Trade is a
multilateral agreement, first negotiated in 1947, and now
adhered to by 34 nations. The General Agreement has
three major functions: (1) It provides a means whereby
tariffs may be reduced by reciprocal concessions among
the member countries, and other barriers to trade
relaxed. The Agreement contains the schedules of rates
which have been reduced, or "bound" against increases,
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