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Washington, District Of Columbia
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The US Ways and Means Committee endorses a treaty with Mexico for reciprocal free duty on goods, highlighting major benefits to US exports, negligible impact on Louisiana sugar/tobacco, and promotion of broader commercial/political ties with Latin America via free trade and Monroe Doctrine enforcement.
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The Ways and Means Committee On Our Relations With Mexico.
A Treaty That Will Be of Advantage to Both Countries.
How It Will Probably Affect the Sugar Interests of Louisiana.
Administering Taffy to Mexico and the South American States.
In the report accompanying the bill to carry into effect the Mexican treaty, prepared by Mr. A. S. Howitt, and reported from the ways and means committee yesterday, the committee says:
By a reference to the terms of the treaty it will be found that the United States agrees to admit from Mexico free of duty twenty-eight articles, of which all but seven are now free of duty under the existing tariff. In return for this inconsiderable concession the government of Mexico agrees to admit free of duty seventy-three articles, all of which, except six, are now subject to duties averaging over 80 per cent. on the dutiable value. From this brief statement the balance of advantage, as a mere business transaction, would seem to be largely in favor of the United States.
In two respects only would there seem to be any interference with any productive industry carried on in this country.
It has been feared that the sugar industry of Louisiana might be unfavorably affected by the free admission of raw Mexican sugars and that the profits of tobacco culture might ultimately in some way be affected.
No serious injury can be reasonably anticipated as to either of these interests when it is considered that the total amount of sugar imported from Mexico during the last six years was 1,793,171 pounds, valued at $63,519, and of tobacco 31,309 pounds, valued at $20,651. It is moreover conceded that Mexico at present does not raise sufficient sugar for its own use, and that its tobacco is of a quality which does not interfere with the product of the United States, but, on the contrary, would advantageously supplement it and replace the tobacco which is now imported from the island of Cuba. The objection, therefore, arises rather from the apprehension in the development of Mexico in the production of these two articles than from any considerable importation at the present time. The prospect of interference is evidently too remote to weigh against the great advantages which will accrue to us from the admission of our manufactures free of duty into Mexico. If at some future time the sugar business should be largely developed, it must be remembered that its growth would afford a proportionately large outlet for our machinery and lead to an interchange of crude products from Mexico for these forms of value, in which skilled labor is most largely required, and from which the profits are most considerable.
We shall derive from the healthful and natural action of the proposed free exchanges of commerce the beneficial results which we have failed to get out of the restrictive policy which has heretofore checked the natural growth of business between two neighboring and friendly nations.
Mexico is the gate through which this country will find "its connection with the Central and South American states. At present our commerce with those countries is carried on under very great disadvantages. We buy from them far more than we sell, and we cannot hope to reverse this operation so long as our manufactured products cost more than similar articles produced in Europe.
But the day is not far distant when these elements of greater cost will disappear and when our relations with the great American states to the south of us will become more intimate, commercially as well as politically.
The time has already arrived when we must adopt a continental policy, laying its foundations broad and deep in the mutual interests of intimate commercial and political sympathies. The Monroe doctrine must be asserted and enforced.
While we ought to welcome the investment of foreign capital on the continent and to make no objection to the construction of highways of commerce, nevertheless it is essential for our safety, as well as our growth, that we shall exercise a controlling influence in the affairs of the western world.
It may not be desirable that we should extend the limits of our sovereignty beyond our own borders, but every measure which tends to establish closer relations with our neighbors, to create mutual interests, to develop common hopes and sympathies, and to tie us more closely together in the support of the principles of free government and the progress of human liberty should be encouraged. It is for this reason that the treaty with Mexico marks an era in the progress of the western world and in the spread of that sentiment of mutual friendship which should animate its inhabitants. Between us there are no antagonisms either of government or of commercial interest. Happily, we are free from the evils which have descended from despotic governments. Endowed with all the elements of wealth and happiness, we have only ourselves to reproach if we do not form prosperous and contented communities.
With perfect freedom of exchange secured, promises of the ages can be realized in the western world. The spread of knowledge, the free interchange of opinions and of products, will tend to produce among its inhabitants that equitable distribution of the fruits of human comfort which the old world has failed to secure. Happily we have not exhausted fields to cultivate but the whole unbounded continent is ours for life, liberty, and the pursuit of happiness.
We have only to cultivate peace and good will with our neighbors and accept every opportunity for free intercourse and free exchange in order to complete the demonstration that the blessings which have crowned the unrestricted commercial intercourse of the states of our union with each other may be extended and enjoyed by all the people of the western hemisphere not only in peace and security, but without peril to their political existence as free and independent nations.
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The Ways and Means Committee reports that the Mexican treaty allows free admission of US manufactures into Mexico, benefiting American commerce greatly while minimally affecting Louisiana sugar and tobacco industries, and fosters closer relations with Central and South American states through free trade and continental policy.