Curbs on Shoe Imports Urged by Sen. Sasser

Sen. Jim Sasser (D-Tenn.), saying “the United States and this Administration have no trade policy,” Saturday called on the White House to impose restraints on shoe imports to help the suffering domestic footwear industry.

“It is time we got beyond simplistic catchwords that have immobilized us for so long,” he said in the Democratic response to President Reagan’s weekly radio address. “Free trade does not really exist in the modern market.”

“The U.S. shoe industry is literally withering on the vine due to a surge in footwear imports that reached 75% of the U.S. market in 1985,” Sasser said. In the senator’s home state, Tennessee, once the fifth-largest shoe-producing state in the country, 12 shoe factories have closed in the last 18 months.

Disarming in Trade War

“Far more is at stake here than the fate of a single industry. Frankly, we’re dealing with the credibility of our entire system of trade law,” Sasser said. “If the President fails to act here, where the evidence of import damage is truly extraordinary, we will be declaring unilateral disarmament in the intensifying battle for world trade.”

The President is required under law to act by next Sunday on a recommendation made by the International Trade Commission in June that he impose a novel shoe import quota system, in which the government would auction the right to import certain amounts of shoes.

“The International Trade Commission found that the shoe industry deserves and needs temporary relief, but the continued vacillation of the White House . . . only affirms what some of us have suspected for some time: that the United States and this Administration have no trade policy,” Sasser said.

“The belief that there is no middle ground between absolute free trade and absolute protectionism is largely responsible for the trade crisis we face today,” he added.

Trade Deficit Zooms

He said that the scope of that crisis is indicated by the growth of the nation’s trade deficit from $28 billion in 1981 to “the very real prospect of trade deficits that will have increased fivefold, to $150 billion” in 1985.

“For the first time in this century, the United States is now a debtor nation and our main export right now is American jobs,” Sasser said.

The problem, he said, is not with Japan or Canada or any other foreign nation. “The problem is ours and it’s a matter of gross inaction,” he said.

“The protectionist label is a red herring when virtually every government in the world seeks to assist its domestic industries with subsidies, with currency manipulation or with quotas,” he said.