Published May 1967 — Download PDF of the original newspaper column
From the Office of United States Senator Robert C. Byrd 105 Senate Office Building, Washington, D. C. 20510 Volume VII -- Number 20 May 19, 1967 Byrd's Eye View A Public Service Column by Senator Robert C. Byrd POTENTIAL CRISIS IN GLASS INDUSTRY Glass manufacturers in West Virginia may well feel the old saying, "Take-one -step forward and drop back two", fits the present glass tariff situation. In January of this year, the Administration terminated higher tariffs imposed in 1962 on the import of sheet glass, simultaneously with similar action on watch movements. That action has opened the door for foreign glass manufacturers to pour their products into the U.S. market, with a certainty that there would be an adverse impact on prices. This drop in prices logically could be expected to trigger a chain reaction of reduced sales of U.S. glass, lowered U.S. glass production demand, and rising unemployment in the glass manufacturing industry. Administration action to roll back these tariffs reportedly was taken on advice of advisers with an eye on negotiations under the Kennedy round of trade agreements in Geneva, currently being concluded. Thus, over protests from concerned members of Congress and the glass industry, glass tariffs generally were rolled back to pre-1962 levels. In 1962, tariff increases were instituted to protect the U.S. glass industry from the damaging effects of growing imports of cheaply produced glass products from abroad, for the U.S. glass industry has a built-in disadvantage in price competition with foreign manufacturers. Because of cheap labor costs and lower freight charges, foreign producers can sell at a lower price. As examples of the assistance given by the 1962 protective tariffs, glass duties in some categories of sheet glass were set as follows: for sheets under 2 and 2/3 sq. ft. of surface area, from .7 to 1.3 cents; for sheets over 7 sq. ft. but less than 15 sq. ft. of surface area, from 1.1 to 1. 9 cents; for sheets over 15 sq. ft., but under 16 and 2/3 sq. ft., from 1.4 cents to 2.4 cents. Then in January of this year, the Administration order rolled back these tariffs, respectively, to .7 cent 1.1 cents, and 1.4 cents. The import figures for the first quarter of 1967 promptly forecasted the advancing flood. Import statistics reported receipt into the U. S. of 36,504,787 1bs. in 1966, at a value of $10,663,007, for sheet glass of over 7 sq. ft., but under 15 sq. ft. For January through March 1967, the figures reported receipt of 10,453,169 lbs., at a value of $3,461,980 for that glass category. This reflects an increase of approximately one-seventh in volume. What is particularly notable here is the quickly accelerated rate of increase. The President's termination order was only issued in mid-January. These import statistics seem to represent a virtual leap forward. The U. S. glass industry--especially vulnerable to imports from cheap labor countries all over the globe--Mexico, Japan, Europe--already has expressed apprehension over future developments. In West Virginia, the debilitating effect of rolled-back tariffs and increased foreign imports upon the industry raises the specter of some return to the distressing burden of unemployment borne in past years. - 30 -