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General Agreement on Tariffs and Trade

chance always remains that it could move out of the country, leaving us without retoolable industries available if and when hostilities recur. In the United States, civil aviation is also one of our two largest exports (along with Hollywood movies) and contributes significantly to our gross national product.The concept of the federal government being forced to accept bids from foreign companies for everything from toilet paper to major construction products is alien to many Americans, who have grown up in a period of protectionism. When auto workers can change their vote because a politician drives a foreign-made car, elected officials and government functionaries at all levels have spent the last several decades extremely conscious of "buy American" attitudes. An open government procurement process will inevitably bring foreign products into all levels of our government--similarly, of course, it will allow us to offer "American know-how" to governments around the globe.The U.S. timber industry has changed phenomenally in the past 15 years, largely because Japan doesnt have enough of its own trees to meet its demand for paper. The cheapest way for the Japanese to meet their paper needs has been to import raw logs from America, a trade which ended in the 1980s because there simply was not enough timber to supply Japan and satisfy domestic U.S. needs. Free trade, of course, demands that traders sell to the customer who offers the highest price; they cannot be required to fill the needs of one market at the expense of another. Should Americans sell to Japan at higher prices even if it means domestic shortages, or is it appropriate to say, "These are our trees, hands off"?The arguments that apply to protecting timber can also be easily applied to other natural resources, such as coal or copper. On the other hand, free trade agreements work to the benefit of the United States in terms of resources where we cannot fill our own needs, such as ...

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