Foreign Competition for American Producers

February 21, 1962

Report Outline
Challenge of Booming Foreign Industry
Economic Advances in Europe and Japan
Conditions Affecting Trade Competition

Challenge of Booming Foreign Industry

Growth of Economic Power in the Free World

Debate in congress on the bill to enlarge the President's tariff-bargaining authority will focus attention on the growing economic power of industrialized nations of the free world that compete with the United States in leading export markets. Western Europe has experienced phenomenal advances in industrial production since its recovery from the ravages of World War II. Further advances are expected as the European Economic Community or Common Market matures and takes in additional members. When the six nations which formed the community in 1957—Belgium, France, Italy, Luxembourg, Netherlands, West Germany—are joined by Great Britain and certain smaller countries, most of Western Europe will become a great unified trading area in which goods and workers eventually will move as freely across national borders as people and articles of commerce move across state boundaries in the United States.

The postwar economic growth of Western Europe has been matched only in Japan. But Japan, sole great industrial country of the Far East, faces the formidable problem of finding markets for its growing output of goods. Trade barriers hamper the export of low-cost Japanese products to most of the trading nations of the West.

United States interests, political as well as commercial, are powerfully affected by economic developments in Western Europe and Japan. Expansion of industry and growth of wealth on the other side of the Atlantic and of the Pacific are of primary importance in strengthening the power and influence of the free world against the threat of Communist expansion. Industry in Western Europe and in Japan is dependent on imports of raw materials, supplied in large measure by the less developed countries. Industrial growth in the free world therefore brings direct benefits to the poorer nations and thus may be expected to reduce the attractions of communism for their people and leaders.

ISSUE TRACKER for Related Reports
American Investment Abroad
Jan. 26, 1968  American Investments in European Industry
Jul. 11, 1962  Protection of Investments in Backward Countries
Feb. 21, 1962  Foreign Competition for American Producers
Jun. 24, 1959  American Manufacturing in Foreign Countries
Feb. 25, 1953  American Private Investment Abroad
May 11, 1949  Government Guaranties for Foreign Investments
Apr. 26, 1932  American Manufacturing in Foreign Countries
Feb. 03, 1932  Defaulted Foreign Bonds
May 14, 1931  Protection of American Lives and Property Abroad
Apr. 01, 1929  American Investments in European Industry
May 17, 1926  American Investments in the Western Hemisphere
May 14, 1925  American Investments in Foreign Countries 1919–1924
Economic Analyses, Forecasts, and Statistics
Exports and Imports
International Finance