United States Trade Agreements Legislation

United States trade agreements legislation in Global Commerce Policy

In this regard, united states trade agreements legislation is: like other countries, the United States has a range of legislation covering its import and export trade, but the influence of the United States in the world economy, the GATT and the WTO, and the role Congress has in the formulation of external economic relations have always meant that its trade legislation is viewed as particularly important by other countries. This entry mainly deals with the legislation enabling the United States to participate in multilateral trade negotiations in recognition of the leading part it has so far taken in them. The starting point for such legislation is the Reciprocal Trade Agreements Act of 1934 which authorized the President to enter into trade agreements with other governments and to modify the United States tariff regime for the entry of goods. This Act was extended with minor changes in 1937, 1940, 1943 and 1945. The entries on trade policy in the Encyclopedia are here. On the expiry of the 1945 extension on 1 June 1948, it was extended for one year with the significant inclusion of peril points. The 1949 extension, to 30 June 1951, repealed this change. The Trade Agreements Extension Act of 1955 permitted the President to make limited tariff reductions which, with some minor changes, was carried forward into the 1958 extension, due to expire in 1962. The entries on trade policy are here. It reintroduced the idea of peril points. This limited negotiating authority was a major reason for the meagre results of the Dillon Round. The entries on trade policy in the Encyclopedia are here. Up to 1962, then, the President did not have the authority to deal with systemic issues. The passage of the Trade Expansion Act of 1962 extended the presidential authority considerably, largely because of a realization of what the economic and trade potential of the European Economic Community (EEC), now that Europe had fully recovered from the damage caused by the war, might mean to United States trading interests. The Act allowed a reduction of existing tariffs by 50% and even to zero if they were less than 5%, but leaving it to the President how this might be achieved. This allowed experimentation with the linear tariff cut formula. Some prospective reductions to zero were conditional on an agreement with the EEC. There was provision in the Act for retaliatory action if foreign governments harmed the trade of the United States. The entries on trade policy are here. Industries and workers injured by increased imports became eligible for direct assistance. Finally, this Act also created the Office of the Special Representative for Trade Negotiations, the forerunner of the USTR. When the 1962 negotiating authority expired in 1967, it was not renewed until the Trade Act of 1974 which gave the President authority to participate in the Tokyo Round negotiations until 5 January 1980. This was the first appearance of fast-track. This Act also formalized the retaliatory power of the United States Government in cases of illegal or unfair action by foreign governments through Section 301. This section became part, in amended form, of all subsequent trade legislation. The Trade Agreements Act of 1979 adopted the Tokyo Round outcomes. The next act, the Trade and Tariffs Act of 1984, did not give the President new negotiating authority. That had to wait until 1988 with the passing of the Omnibus Trade and Competitiveness Act. This was also the first time since the end of World War II that a major trade act did not emanate from the executive. President Clinton appeared to have regained the initiative when he tabled the Export Expansion and Reciprocal Trade Agreements Act in September 1997. There appears to be some intended symbolism in the choice of the title in that it harks back to the great trade acts passed during the presidencies of Franklin Delano Roosevelt and John F Kennedy. The entries on trade policy are here. In the end, Congress did not act on the bill. When in early 2001 the new administration again sought fast-track authority, it renamed it the Trade Promotion Authority. The entries on trade policy in the Encyclopedia are here. On 6 August 2002 President Bush was able to sign it into law through the Bipartisan Trade Promotion Authority Act of 2002. See also Smoot-Hawley Tariff Act, Jackson-Vanik Amendment, United States Omnibus Trade and Competitiveness Act and United States Reciprocal Trade Agreements Program.[1]

United States trade agreements legislationin the wold Encyclopedia

For an introductory overview on international trade policy, see this entry.

Resources

Notes and References

1. Dictionary of Trade Policy, “United States trade agreements legislation” entry (OAS)

See Also