U.S. foreign trade policies

Definition

U.S. foreign trade policies are the regulations and strategies that the United States employs to govern its economic interactions with other countries. These policies are designed to promote exports, regulate imports, and protect domestic industries while also addressing international economic relationships and trade agreements. During the era of The New Deal, these policies were influenced by economic challenges, leading to significant changes aimed at economic recovery and reform.

5 Must Know Facts For Your Next Test

1. During The New Deal, the U.S. implemented the Reciprocal Trade Agreements Act of 1934, allowing the president to negotiate bilateral trade agreements with other nations.
2. These foreign trade policies aimed to stimulate economic recovery by boosting exports and reducing trade barriers during the Great Depression.
3. The U.S. shifted its approach from protectionism to a more open trade policy to foster international cooperation and economic growth.
4. The goal of these policies was not only economic recovery but also to create a more stable global economy post-World War I.
5. The New Deal era saw increased government intervention in the economy, shaping trade policies that would have lasting impacts on U.S. foreign relations.

Review Questions

• How did U.S. foreign trade policies change during The New Deal, and what were their intended effects?
  • During The New Deal, U.S. foreign trade policies shifted from a primarily protectionist approach to one that favored bilateral trade agreements aimed at stimulating economic recovery. The Reciprocal Trade Agreements Act of 1934 allowed for more flexibility in negotiations, which sought to lower tariffs and encourage exports. These changes were intended to create a more favorable trading environment that would help pull the economy out of the Great Depression.
• Evaluate the impact of U.S. foreign trade policies on domestic industries during The New Deal period.
  • U.S. foreign trade policies during The New Deal had a mixed impact on domestic industries. While lowering tariffs helped increase exports for certain sectors, such as agriculture and manufacturing, some industries faced heightened competition from imports. This led to calls for protective measures to safeguard jobs and stabilize key industries, highlighting a tension between free trade and protectionism that persisted throughout the New Deal era.
• Assess how the changes in U.S. foreign trade policies during The New Deal influenced post-World War II economic strategies.
  • The changes in U.S. foreign trade policies during The New Deal laid the groundwork for a more interventionist approach in international economics after World War II. By establishing frameworks for negotiation through agreements like the Reciprocal Trade Agreements Act, the U.S. created a precedent for future international cooperation through organizations like GATT (General Agreement on Tariffs and Trade). This shift not only aimed at economic recovery but also sought to prevent the kinds of economic nationalism that had contributed to global instability in the early 20th century.

Related terms

Tariffs:

Taxes imposed on imported goods to protect domestic industries and generate revenue for the government.

Trade Agreements: Formal accords between two or more nations that outline the terms of trade between them, often aimed at reducing tariffs and other trade barriers.

Export-Import Bank: A government agency that provides financial assistance to help U.S. companies export their goods and services overseas.