In a number of industries. particularly those with a high labor input. we find that lowwage foreign competition arises quickly. expands rapidly and threatens the existence of domestic manufacturers and workers before they have an opportunity to adjust to the new competition. We have seen this happen in textiles. in footwear manufacturing. and in wood products manufacturing. These are industries where profit margins have been narrow and where many manufacturers have had limited capital resources. High tariffs do not offer meaningful or desirable relief for those industries. Rigid quota systems would undermine our efforts to increase the general level of international trade. In the Trade Expansion Act we attempted to develop the concept of flexible quotas as an answer to this problem. It was contained in the orderly marketing amendment to that act.
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quota system