PRESCRIBING PROCEDURES FOR THE ADMINISTRATION OF THE RECIPROCAL TRADE-AGREEMENTS PROGRAM
By virtue of the authority vested in me by the Constitution and the statutes, including section 332 of the Tariff Act of 1930 (46 Stat. 698) and the Trade Agreements Act approved June 12, 1934, as amended (48 Stat. 943; 57 Stat. 125; 59 Stat. 410; Public Law 307, 81st Congress), and in the interest of the foreign-affairs functions of the United States and in order that the interests of the various branches of American economy may be effectively promoted and safeguarded through the administration of the trade-agreements program, it is ordered as follows:
PART I-ORGANIZATION
1. There is hereby established the Interdepartmental Committee on Trade Agreements (hereinafter referred to as the Trade Agreements Committee), which shall act as the agency through which the President shall, in accordance with section 4 of the said Trade Agreements Act, as amended, seek information and advice before concluding a trade agreement. With a view to the conduct of the trade-agreements program in the general public interest and in order to coordinate the program with the interests of American agriculture, industry, commerce, labor, and security, and of American financial and foreign policy, the Trade Agreements Committee shall consist of a Commissioner of the United States Tariff Commission, who shall be designated by the Chairman of the Commission, and of persons designated from their respective agencies by the Secretary of State, the Secretary of the Treasury, the Secretary of Defense, the Secretary of Agriculture, the Secretary of Commerce, the Secretary of Labor, and the Administrator for Economic Cooperation. There shall likewise be designated from the foregoing agencies alternates to act in place of the members on the Committee when the members are unable to act. A member or alternate from the Department of State shall be the Chairman of the Trade Agreements Committee.
2. There is hereby established the Committee for Reciprocity Information, which shall act as the agency to which, in accordance with section 4 of the Trade Agreements Act, as amended, the views of interested persons with regard to any proposed trade agreement to be concluded under the said Act shall be presented. The Committee for Reciprocity Information shall consist of the same members as the Trade Agreements Committee or their alternates. A member or alternate from the Tariff Commission shall be the Chairman of the Committee for Reciprocity Information.
3. The Trade Agreements Committee and the Committee for Reciprocity Information may invite the participation in their activities of other government agencies when matters of interest thereto are under consideration. Each of the said committees may from time to time designate such sub-committees, and prescribe such procedures and rules and regulations, as it may deem necessary for the conduct of its functions.
PART II-CONCLUSION OF AGREEMENTS
4. Before entering into the negotiation of a proposed trade agreement under the Trade Agreements Act, as amended, the Trade Agreements Committee shall submit to the President for his approval a list of all articles imported into the United States which it is proposed should be considered in such negotiations for possible modification of duties and other import restrictions, imposition of additional import restrictions, or specific continuance of existing customs or excise treatment. Upon approval by the President of any such list, as originally submitted or in amended form, the Trade Agreements Committee shall cause notice of intention to negotiate such agreement, together with such list of articles, to be published in the FEDERAL REGISTER. Such notice and list shall also be issued to the press, and sufficient copies shall be furnished to the Committee for Reciprocity Information for use in connection with such hearings as the Committee may hold with respect thereto. Such notice, together with the list or a statement as to its availability, shall also be published in the Department of State Bulletin, Treasury Decisions, and the Foreign Commerce Weekly.
5. Any interested person desiring to present his views with respect to any article in any list referred to in paragraph 4 hereof, or with respect to any other aspect of a proposed trade agreement, may present such views to the Committee for Reciprocity Information, which shall accord reasonable opportunity for the presentation of such views.
6. With respect to each article in a list referred to in paragraph 4 hereof, the Tariff Commission shall make an analysis of the facts relative to the production, trade, and consumption of the article involved, to the probable effect of granting a concession thereon, and to the competitive factors involved. Such analysis shall be submitted in digest form to the Trade Agreements Committee.
7. With respect to each article exported from the United States which is considered by the Trade Agreements Committee for possible inclusion in a trade agreement, the Department of Commerce shall make an analysis of the facts relative to the production, trade, and consumption of the article involved, to the probable effect of obtaining a concession thereon, and to the competitive factors involved. Such analysis shall be submitted in digest form to the Trade Agreements Committee.
8. Each Department and agency officials from which are members of the Trade Agreements Committee shall, to the extent it considers necessary and within the sphere of its respective responsibilities, make special studies of particular aspects of proposed trade agreements from the point of view of the interests of American agriculture, industry, commerce, labor, and security. Such studies shall be submitted to the Trade Agreements Committee.
9. After analysis and consideration of (a) the studies of he Tariff Commission provided for in paragraph 6 hereof, (b) the studies of the Department of Commerce provided for in paragraph 7 hereof, (c) the special studies provided for in paragraph 8 hereof, (d) the views of interested persons presented to the Committee for Reciprocity Information pursuant to paragraph 5 hereof, and (e) any other information available to the Trade Agreements Committee, including information relating to export duties and restrictions, the Trade Agreements Committee shall make such recommendations to the President relative to the conclusion of the trade agreement under consideration, and to the provisions to be included therein, as are considered appropriate to carry out the purposes set forth in the Trade Agreements Act, as amended. If there is dissent from any recommendation to the President with respect to the inclusion of any proposed concession in a trade agreement, the President shall be furnished a full report by the dissenting member or members of the Trade Agreements Committee, giving the reasons for his or their dissent.
10. There shall be applicable to each tariff concession granted, or other obligations incurred, by the United States in any trade agreement hereafter entered into a clause providing in effect that if, as a result of unforeseen developments and of such concession or other obligation, any article is being imported in such relatively increased quantities and under such conditions as to cause or threaten serious injury to the domestic industry producing like or directly competitive articles, the United States shall be free to withdraw or modify the concession, or suspend the other obligation, in whole or in part, to the extent and for such time as may be necessary to prevent such injury.
11. There shall be obtained from every government or instrumentality thereof with which any trade agreement is hereafter entered into a most-favored-nation commitment securing for the United States the benefits of all tariff concessions and other tariff advantages accorded by the other party or parties to the agreement of any third country. This provision shall be subject to the minimum of necessary exceptions and shall be designed to obtain the greatest possible benefit for the trade of the United States.
PART III-ADMINISTRATION OF AGREEMENTS
12. The Trade Agreements Committee shall at all times keep informed of the operation and effect of all trade agreements which are in force. It shall recommend to the President or to one or more of the agencies represented on the Committee such action as is considered required or appropriate to carry out any such trade agreement or any rectifications and amendments thereof not requiring compliance with the procedures set forth in paragraphs 4 and 5 hereof. The Trade Agreements Committee shall, in particular, keep informed of discriminations by any country against the trade of the United States which cannot be removed by normal diplomatic representations, and, if it considers that the public interest will be served thereby, shall recommend to the President the withholding from such country of the benefit of concessions granted under the Trade Agreements Act, as amended. The Committee may also consider such other questions of commercial policy as have a bearing on its activities with respect to trade agreements.
13. The Tariff Commission, upon request of the President, upon its own motion, or upon application of any interested party when in the judgment of the Tariff Commission there is good and sufficient reason therefor, shall make an investigation to determine whether, as a result of unforeseen developments and of the concession granted, or other obligation incurred, by the United States with respect to any article to which a clause similar to that provided for in paragraph 10 hereof is applicable, such article is being imported in such relatively increased quantities and under such conditions as to cause or threaten serious injury to the domestic industry producing like or directly competitive articles. Should the Tariff Commission find, as a result of its investigation, that such injury is being caused or threatened, it shall recommend to the President, for his consideration in the light of the public interest, the withdrawal or modification of the concession, or the suspension of the other obligation, in whole of in part, to the extent and for such time as the Tariff Commission finds necessary to prevent such injury. In the course of any investigation under this paragraph, the Tariff Commission shall hold hearings, giving reasonable public notice thereof, and shall afford reasonable opportunity for parties interested to be present, to produce evidence, and to be heard at such hearings. The procedure and rules and regulations for such investigations and hearings shall from time to time be prescribed by the Tariff Commission.
14. The Tariff Commission shall at all times keep informed concerning the operation and effect of provisions relating to duties or other import restrictions of the United States contained in trade agreements heretofore or hereafter entered into by the President under the authority of the Trade Agreements Act, as amended. The Tariff Commission, at least once a year, shall submit to the president and to the Congress a factual report on the operation of the trade-agreements program.
15. The Committee for Reciprocity Information shall accord reasonable opportunity to interested persons to present their views with respect to the operation and effect of trade agreements which are in force or to any aspect thereof.
PART IV-TRANSITORY PROVISIONS
16. All action relative to trade agreements already concluded or to the conclusion of new trade agreements which has been taken by the Trade Agreements Committee or by the Committee for Reciprocity Information between June 25, 1948, and the date of this order shall be considered as pro tanto compliance with the provisions of this order, provided that the member from the Tariff Commission on the Trade Agreements committee shall be accorded full opportunity to present to that Committee, and to the President pursuant to the final sentence of paragraph 9 hereof, information and advice with respect to the decisions, recommendations, and other actions of that Committee between June 25, 1948, and the date of this order relative to the conclusion of any trade agreement after the enactment of the Trade Agreements Extension Act of 1949, approved September 26, 1949 (Public Law 307, 81st Congress).
PART V-SUPERSEDURE
17. This order supersedes Executive Order No. 10004 (1) of October 5, 1948, entitled "Prescribing Procedures for the Administration of the Reciprocal Trade-Agreements Program."
HARRY S. TRUMAN,
THE WHITE HOUSE,
October 5, 1949