Business Notes Trade

Those sleek, chic foreign shoes that beckon in store windows may soon be in short supply. The U.S. International Trade Commission said last week that it + will recommend to President Reagan a five-year program of import quotas to aid the struggling American shoe industry. Foreign competitors took 71% of the U.S. market last year, up from 4% in 1960. Under the ITC plan, imports of shoes with a value of $2.50 or more per pair would be limited to 474 million pairs during each of the next two years, a decrease of 17.6% from 1984. Imports would be allowed to rise only 3% in the third year, 6% in the fourth and 9% in the fifth.

U.S. manufacturers praised the proposal, but the Footwear Retailers of America said that by making supply scarcer, the quotas would raise the price of imported shoes by 19% and domestic footwear by 11%. "It would be a disaster for the public," said FRA President Peter Mangione. The White House has until late August to accept, modify or reject the plan. Though Reagan opposes protectionism, the political pressure to help the shoemakers will be strong. In response to past ITC recommendations, the President has restricted motorcycle and steel imports.