Elmer L. Menzie

Trade Liberalization vs. Agricultural Import Restriction

Under section 22 of the Agricultural Adjustment Act the President has since 1935 had authority to impose quotas or fees upon agricultural imports if these imports were believed to be adversely affecting United States farm price and income support programs. Notwithstanding urgent demands from commodity interest groups to invoke this authority it has been used only on a few commodities. Constraints upon use have come mainly from two sources: lack of evidence that imports were adversely affecting domestic programs, and diplomatic interests. Nevertheless in its potential and actual use this authority has had a substantial trade inhibiting effect. Since the Trade Expansion Act of 1962 has ample general provisions to protect domestic groups and industries, the authors conclude that the special provisions of section 22 should be terminated and that the general provisions of the 1962 act should be utilized as justified for farm products. Termination of section 22 should improve the posture of the United States for obtaining concessions in counterpart restrictive devices applied against our farm exports, including EECs variable import levy.