战略与国际研究中心-The-State-of-the-Trade-Union_65页_391kb

U.S. Trade Policy Since 1934: A Summary

Core Content

The United States has undergone significant changes in trade policy since the passage of the 1934 Reciprocal Trade Agreements Act (RTAA), which marked the beginning of a long-term effort to liberalize trade. This chapter outlines the historical development of U.S. trade policy and summarizes the economic literature on its effects.

Main Points

1. Evolution of U.S. Trade Policy

• High Tariffs in the Early Era (1934-1941): Before the RTAA, the U.S. had high import tariffs, which were further increased by the Smoot-Hawley Tariff Act of 1930, peaking at 60% in 1932. The RTAA aimed to reduce tariffs through bilateral agreements, promoting U.S. exports.
• Post-WWII Shift to Multilateralism (1941-1967): After WWII, the U.S. shifted toward multilateral trade negotiations under the General Agreement on Tariffs and Trade (GATT), established in 1947. The GATT provided a framework for trade liberalization, leading to significant tariff reductions by the 1940s.
• 1960s and 1970s: Domestic Struggles and Nontariff Measures: The 1960s and 1970s saw increased competition from European and Japanese firms, prompting the U.S. to adopt voluntary export restraints (VERs) and other nontariff measures. These were used to protect vulnerable industries.
• 1980s and 1990s: Expansion and Multilateral Agreements: The U.S. continued to negotiate trade agreements with various countries, including NAFTA (1994). The Uruguay Round Agreements (1986-1993) led to the establishment of the World Trade Organization (WTO) and new rules on services, intellectual property, and investment.

2. Economic Effects of Trade Liberalization

• Positive Economy-Wide Benefits: The literature suggests that trade liberalization has had broadly positive effects on the U.S. economy, even after accounting for adjustment costs.
• Dispersed Gains and Concentrated Losses: While gains from trade liberalization are more widely dispersed, the losses are often concentrated in specific industries, making them more visible.
• Diminishing Returns on Tariff Reductions: As tariffs fell to very low levels, the marginal gains from further reductions became smaller. This has led to a greater focus on reducing nontariff barriers and services barriers.
• Trade Adjustment Assistance (TAA): The Trade Expansion Act of 1962 and the Trade Act of 1974 introduced programs to assist workers and firms affected by trade liberalization, such as the TAA program.

Key Information

• Tariff Reductions: U.S. average tariff rates dropped from 18.4% in 1934 to 1.3% in 2007.
• Multilateral Framework: The GATT and later the WTO established a stable multilateral framework for trade negotiations.
• Nontariff Measures: The focus shifted from tariffs to nontariff measures, including VERs, quotas, and market arrangements, especially in the textile and apparel sectors.
• Voluntary Export Restraints (VERs): These were used to manage import competition, particularly from Japan and other countries, and were phased out over time with the establishment of the WTO Agreement on Textiles and Clothing (ATC).
• Trade Agreements: The U.S. has entered into numerous free trade agreements (FTAs) with countries such as Singapore, Chile, Australia, and Mexico (NAFTA), as well as ongoing agreements with Colombia, South Korea, and Panama.
• Political and Economic Rationales: The most-favored-nation (MFN) principle was central to U.S. trade policy, ensuring non-discrimination and promoting trade openness.

Timeline and Structure

The chapter is structured into two main parts:

1. History of U.S. Trade Policy: Divided into four major time periods:

   • 1934-1941: The RTAA and the beginning of trade liberalization.
   • 1941-1967: The establishment of the GATT and the postwar liberalization.
   • 1967-1989: Domestic pressures and the use of nontariff measures.
   • 1989-Present: Renewed liberalization efforts and the expansion of trade agreements.

2. Economic Literature on Trade Effects: This section includes:

   • Economic theories and their implications.
   • Quantitative analysis of the benefits and costs of trade liberalization.
   • Focus on the diminishing returns of tariff reductions and the importance of addressing nontariff and services barriers.

Conclusion

The U.S. trade policy since 1934 has evolved from high tariffs and bilateral agreements to a multilateral framework under the GATT and WTO. While trade liberalization has had positive economic effects, it has also posed challenges for certain industries. The shift toward nontariff measures and the inclusion of services in trade negotiations reflect the changing nature of global trade and the need for a more comprehensive policy approach.