This paper provides a chronology overview of the United States trade policy since 1934 and points out the key events and effects on the United States’ economy. The history of trade policy is described in five major points. The first point is about the Agreements Act of 1934, which talks about the reduction of tariff in economic activity throughout the world as a result of Great Depression and Smoot-Hawley Tariff Act. The second point is the General Agreement on Tariff and Trade (GATT), which is an international organization created in 1947 to negotiate the issues in trade tariffs. Third point examines the Trade expansion Act, created in 1962 primarily designed to deal with the new situation created by the formation of the European Union. This act enables United State to initiate a wide-range of multilateral trade negotiations, also known as Kennedy Round. The fourth point talks about the Trade Reform Act of 1974, which replaced 1962 Trade Expansion Act. Under the Trade Reform Act, President is authorized to negotiate tariff reductions of up to 60 percent and negotiate reductions in non-tariff trade barriers. This also enables US to participate in the multilateral tariff negotiations known as the Tokyo Round. Final point covers the 1984 and 1988 Trade Acts, which refers to Trade and Tariff Act of 1984 and the Omnibus trade and Competitiveness Act of 1988.
The Trade Agreements Act of 1934
The Trade Agreement Act of 1934 is the reaction to the Smoot-Hawley Tariff Act. The Trade Agreements Act of 1934 is the negotiation of tariff agreements between the United States and foreign nations to reduce tariff by 50 percent that was set under the Smoot-Hawley tariff Act. This bilateral Trade Agreement Act was passed by the U.S congress under the president Franklin Roosevelt authority. In addition, other trade agreements after the Trade Agreements Act of 1934, were based on “most-favored-nations principle.