The Reciprocal Trade Agreements Act Provides The President With A Mechanism

Reciprocity was an important principle of trade agreements negotiated under the RTAA, as it encouraged Congress to reduce tariffs. As more and more foreign countries have entered into bilateral tariff reduction agreements with the United States, exporters have been more encouraged to promote Congress in favour of even lower tariffs in many sectors. [3] The U.S. State Department also found good use of free trade expansion after World War II. Many in the Department of Foreign Affairs saw multilateral trade agreements as a means of integrating the world in accordance with the Marshall Plan and the Monroe Doctrine. U.S. trade policy has become an integral part of U.S. foreign policy. This search for free trade as diplomacy intensified during the Cold War, when the United States competed with the Soviet Union for relations around the world. [20] By giving the President the power to negotiate the agreements, Congress effectively ceded to the executive branch some of its power (in accordance with the U.S. Constitution, Article I, Section VIII).

The president had to take into account the well-being of all Americans, his foreign policy priorities and what was feasible with other countries in his tariff decisions. These considerations have generally left presidents more inclined to reduce tariffs than Congress. [19] Whether Roosevelt or Congress predict this outcome is a matter of historical debate. The Reciprocal Trade Agreements Act provides the President with a mechanism: between 1934 and 1945, the United States signed 32 reciprocal trade agreements with 27 countries. [4] In addition, the conclusion of the General Agreement on Tariffs and Trade was taken by the Authority under the RTAA. The Reciprocal Tariff Act (adopted on 12 June 1934, Chapter 474, 48 Stat. 943, 19 U.C No. 1351) provided for the negotiation of customs agreements between the United States and various nations, including Latin American countries. [1] The law served as an institutional reform to allow the president to negotiate with foreign nations a reduction in tariffs in exchange for a reciprocal reduction in U.S. tariffs. This has led to a reduction in tariffs.

President Franklin D. Roosevelt signed the Reciprocal Trade Agreements Act (RTAA) in 1934. It gave the president the power to negotiate bilateral and reciprocal trade agreements with other countries and allowed Roosevelt to liberalize U.S. trade policy around the world.