Knowledge (XXG)

Reciprocal Tariff Act

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38: 399:. However, the administration decided to take advantage of having a Democrat-controlled Congress and Presidency to push through the RTAA. In 1936 and 1940, the Republican Party ran on a platform of repealing the tariff reductions secured under the RTAA. However, when they won back Congress in 1946, they did not act to remove the tariffs. In the years since the enactment of the RTAA in 1934, the economies of Europe and 350:, and Republicans were generally for higher tariffs. The pattern was clear in congressional votes for tariffs from 1860 to 1930. Democrats were the congressional minority in the majority of Congresses between the Civil War and the election of Roosevelt. During their brief stints in the majority, Democrats passed several tariff reduction bills. Examples include the 426:
As more American industries began to benefit from tariff reductions, some of them began to lobby Congress for lower tariffs. Until RTAA, Congress had been lobbied mostly by industries seeking to create or increase tariffs to protect their industry. That change also helped to lock in many of the gains
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The extension law was not enacted by June 11, 1948, the due date of the extension in 1945, and the right of reduction was revoked. The extension law was established on November 26, 1949, and was extended until June 11, 1951, and then 1951. The year was extended by two years and revoked in 1953 and
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countries. The Act served as an institutional reform intended to authorize the president to negotiate with foreign nations to reduce tariffs in return for reciprocal reductions in tariffs in the United States up to 50%. It resulted in a reduction of duties. This was the policy of the low tariff
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As American duties dropped off dramatically, global markets were also increasingly liberalized. World trade expanded rapidly. The RTAA was a US law but provided the first widespread system of guidelines for bilateral trade agreements. The United States and the European nations began avoiding
407:, which left a huge global production vacuum that was filled by American exporters. During the war, the United States had its highest positive account balance in its history. Republican preferences for tariffs started shifting, as exporters from home districts began to benefit from increased 337:
priorities, and what was feasible with other countries in making his decisions on tariffs. Those considerations generally left presidents more inclined to reduce tariffs than the Congress. Whether Roosevelt or Congress foresaw that result is a matter of historical debate.
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This Act has amended Article 2 (c) (19 U. SC 135 1352 (c)) of the 1934 Reciprocity–Commerce–Committee Act in which the extension law up to that stipulates the period of authority. In contrast, the 1958 Extension Act stipulates that Article 2 itself will extend the time
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brokered under RTAA because it gave Congress an incentive to lower tariffs. As more foreign countries entered into bilateral tariff reduction deals with the United States, exporters had more incentive to lobby Congress for even lower tariffs across many industries.
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By giving the President the authority to negotiate the deals, the Congress effectively ceded a part of its power (authorized under US Constitution, Article I, Section VIII) to the executive branch. The President had to consider the welfare of all Americans, his
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The RTAA's novel approach freed Roosevelt and Congress to break that trend of tariff increases. It tied US tariff reductions to reciprocal tariff reductions with international partners. It also allowed Congress to approve the tariffs with a
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Between 1934 and 1945, the United States signed 32 reciprocal trade agreements with 27 countries. Furthermore, the conclusion of the General Agreement on Tariffs and Trade was made by the authority under the RTAA.
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necessary for other treaties. Also, the President had the authority to negotiate the terms. The three innovations in trade policy created the political will and feasibility to enact a more liberal trade policy.
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Democrats voted for trade liberalization far more often than Republicans but were not uniform in their preferences. Democrats skeptical of reducing tariffs during the Depression included Representative
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The authorization under the RTAA has been granted for three years from the day of enactment (June 12, 1934) the RTAA. The authorization was extended to in 1937, in 1940, in 1943, in 1945.
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also found good use of the expansion of free trade after World War II. Many in the State Department saw multilateral trade agreements as a way to engage the world in accordance with the
1236: 1166: 1226: 1301: 423:. That means that the tariff would have to be especially onerous, and the Congress would have to be especially protectionist. Once enacted, tariff reductions tended to stick. 1291: 1933: 1151: 1141: 262:, and in response, the new tariff reduction, the Trade Expansion Act of 1962, was enacted, and the President was granted the power to reduce tariffs by June 30, 1967. 367:
agreements in which they voted for other members' preferred tariffs in order to secure support for their own. No one took into account the aggregate toll on American
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policies, which pursued national trade objectives at the expense of other nations. Instead, countries started to realize the gains from trade co-operation.
1096: 788:; Gilligan, Michael (1994). "The Political Economy of Trading States: Factor Specificity, Collective Action Problems and Domestic Political Institutions". 1196: 1191: 1181: 1131: 447:
Led by the United States and the United Kingdom, international co-operation flourished, and concrete institutions were created. In talks begun at the
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The RTAA, which has been updated intermittently until 1961, is a multilateral trade negotiation in GATT and negotiations with new member states.
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The power to cut down expired in 1961, but in November, President Kennedy advocated a new tariff reduction negotiations, which would be called
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of 1930 that raised rates, and sharply reduced international trade. The Reciprocal Tariff Act was promoted heavily by Secretary of State
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signed the Reciprocal Trade Agreements Act (RTAA) into law in 1934. It gave the president power to negotiate bilateral,
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Another key feature of the RTAA was that if Congress wanted to repeal a tariff reduction, it would take a two-thirds
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in the United States. American duties on foreign products declined from an average of 46% in 1934 to 12% by 1962.
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For example, it became the basis of the United States tariff reduction under the Japan Accession Protocol.
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Bailey, Michael A.; Goldstein, Weingast (April 1997). "The Institutional Roots of American Trade Policy".
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By the Great Depression, tariffs were at historic highs. Members of Congress commonly entered in informal
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extended on August 7., also for one year until 1954. Met. The 1954 extension was also for one year,
835:"International regimes, transactions, and change: embedded liberalism in the postwar economic order" 567: 273:) included the negotiating powers of non-tariff measures in the respective legislation, such as the 1510: 1480: 1276: 1126: 1106: 1086: 1081: 1066: 1056: 1051: 1046: 1031: 1026: 1021: 1011: 1001: 996: 991: 986: 981: 976: 971: 966: 961: 956: 946: 936: 921: 916: 911: 547: 408: 355: 314: 277:, was granted to the President, but the power to reduce tariffs was generally similar to the RTAA. 785: 752: 1611: 1336: 1266: 1061: 628: 580: 205: 17: 1897: 1569: 1515: 479: 298: 862: 1884: 1879: 1606: 846: 797: 620: 572: 325: 209: 358:. However, subsequent Republican majorities always undid the unilateral tariff reductions. 1854: 1849: 1793: 1460: 475: 388: 266: 379:. Roosevelt and key members of his administration were intent on stopping the practice. 1874: 1455: 1444: 1439: 1429: 1424: 1419: 1409: 1404: 1399: 1394: 1389: 1384: 801: 334: 297:-controlled Congress would prefer lower tariffs. Thus, tariffs were chosen based on US 252:. The law, which was once revoked in 1958 but extended on 30 August 1960, was enacted. 1917: 1859: 1550: 1434: 632: 584: 471: 420: 392: 259: 224: 162: 733:
July 1, 1954, ch. 445, 1, 1, 68 Stat. 360; June 21, 1955, ch. 169, 2 2, 69 Stat. 162
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to raise tariffs decreased, and the political incentive to lower tariffs increased.
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Before the RTAA, if Congress wanted to establish a lower tariff for particular
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Democrats in response to the high tariff Republican program which produced the
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to raise tariffs to protect it from the negative effects of foreign imports.
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around the globe. It is widely credited with ushering in the era of liberal
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was created. By 1949, the first international board governing trade, the
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agreements between the United States and separate nations, particularly
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in the United States were at historically high levels from the
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accelerated its protectionist policies, culminating in the
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with other countries and enabled Roosevelt to liberalize
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Aug. 7, 1953, ch. 348, title I, 101 101, 67 Stat. 472
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Historical partisan divide over tariffs and the RTAA
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June 16, 1951, ch. 141, 2 2, 9 (a), 65 Stat. 72, 75
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Differences between RTAA and other trade agreements
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That practice is commonly referred to as 1584: 1570: 1562: 894:United States federal taxation legislation 885: 871: 863: 703:Sept. 26, 1949, ch. 585, 3 3, 63 Stat. 698 1794:National Bituminous Coal Conservation Act 850: 813: 811: 685:June 7, 1943, ch. 118, 1, 1, 57 Stat. 125 658:June 12, 1934, ch. 474, 2 2, 48 Stat. 944 566: 141:(enacted June 12, 1934, ch. 474, 48  606: 604: 602: 600: 598: 596: 594: 541: 539: 537: 1934:United States federal trade legislation 1693:Federal Emergency Relief Administration 524: 503: 48:AN ACT To amend the Tariff Act of 1930. 780: 778: 457:General Agreement on Tariffs and Trade 403:had been decimated by the violence of 29: 7: 1814:Rural Electrification Administration 1779:Federal Energy Regulatory Commission 694:July 5, 1945, ch. 269, 1, 1, 59 Stat 494:for relationships around the globe. 1769:Works Progress Administration (WPA) 833:Ruggie, John Gerard (Spring 1982). 790:The Journal of Political Philosophy 676:Apr. 12, 1940, ch. 96, 54 Stat. 107 802:10.1111/j.1467-9760.1994.tb00020.x 546:Hiscox, Michael J. (Autumn 1999). 157:) provided for the negotiation of 78:Tooltip Public Law (United States) 25: 1728:Public Works Administration (PWA) 1698:Frazier–Lemke Farm Bankruptcy Act 1658:Civilian Conservation Corps (CCC) 667:Mar. 1, 1937, ch. 22, 50 Stat. 24 208:to the 1920s. In response to the 1753:Tennessee Valley Authority (TVA) 1718:National Recovery Administration 1708:National Industrial Recovery Act 1367:2021 (Infrastructure, PL 117–58) 482:. That pursuit of free trade as 36: 1824:United States Housing Authority 820:International Political Economy 18:Reciprocal Trade Agreements Act 1799:National Labor Relations Board 1789:Judicial Procedures Reform Act 490:, as the US competed with the 324:was an important tenet of the 1: 1723:National Youth Administration 645:U.S. Department of Commerce, 178:Reciprocal Tariff Act of 1934 27:1934 United States tariff law 1784:Farm Security Administration 1357:2021 (Defense Authorization) 435:World changes caused by RTAA 356:Underwood Tariff Act of 1913 269:negotiations in GATT (later 1733:Public Works of Art Project 1653:Agricultural Adjustment Act 1362:2021 (American Rescue Plan) 453:International Monetary Fund 231:Trade agreements under RTAA 188:reciprocal trade agreements 58:73rd United States Congress 1955: 1774:Federal Project Number One 1683:Farm Credit Administration 1678:Homeowners Refinancing Act 1663:Civil Works Administration 839:International Organization 555:International Organization 1893: 1809:Rural Electrification Act 852:10.1017/s0020818300018993 352:Wilson–Gorman Act of 1894 265:From then on, rounds and 118:in the House as H.R. 8687 111: 35: 1829:Fair Labor Standards Act 461:World Trade Organization 449:Bretton Woods Conference 218:Smoot–Hawley Act of 1930 1929:International trade law 1743:Railroad Retirement Act 1622:American Liberty League 818:Oatley, Thomas (2010). 649:, March 16, 1946, p. 31 647:Foreign Commerce Weekly 577:10.1162/002081899551039 486:intensified during the 1491:1922: Fordney–McCumber 468:US Department of State 1845:Franklin D. 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Roosevelt 31:Reciprocal Tariff Act 1924:1934 in American law 1865:Henry Morgenthau Jr. 1713:National Housing Act 1673:Executive Order 6102 1415:1828: "Abominations" 625:10.1353/wp.1997.0007 442:beggar-thy-neighbour 348:trade liberalization 313:, as opposed to the 1476:1909: Payne–Aldrich 1466:1894: Wilson–Gorman 409:international trade 315:two-thirds majority 168:Smoot–Hawley tariff 107:Legislative history 32: 1703:Glass–Steagall Act 1668:Communications Act 1612:New Deal Coalition 1496:1930: Smoot–Hawley 1395:1791: Hamilton III 822:. pp. 71–113. 206:American Civil War 1911: 1910: 1600:Causes and legacy 1559: 1558: 1400:1792: Hamilton IV 1390:1790: Hamilton II 1287:2010 (PL 111-312) 1282:2010 (PL 111–240) 480:US foreign policy 299:domestic politics 275:Trade Law of 1974 135: 134: 90:Statutes at Large 16:(Redirected from 1946: 1939:June 1934 events 1885:Robert F. 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288: 280: 278: 276: 272: 268: 263: 261: 260:Kennedy Round 256: 253: 245: 239: 237: 230: 228: 226: 225:protectionism 221: 219: 215: 211: 207: 203: 199: 197: 193: 189: 185: 177: 175: 173: 169: 164: 160: 156: 152: 148: 144: 140: 127: 124:by President 123: 120: 117: 114: 113: 110: 105: 102: 98: 94: 92: 86: 83: 76: 71: 67: 62: 59: 55: 51: 47: 43: 39: 34: 19: 1737: 1500: 1435:1846: Walker 1405:1816: Dallas 1347:2020 (CARES) 842: 838: 828: 819: 793: 789: 768: 759: 753:Dillon round 747: 738: 729: 708: 699: 690: 681: 672: 663: 654: 646: 641: 616: 612: 558: 554: 527: 506: 492:Soviet Union 465: 446: 438: 425: 418: 405:World War II 385:Henry Rainey 381: 364:quid pro quo 362: 360: 345: 331: 320: 307: 284: 264: 257: 254: 246: 243: 234: 222: 200: 196:trade policy 181: 172:Cordell Hull 138: 136: 121: 115: 1838:Individuals 1648:Economy Act 1617:Brain Trust 1541:1993: NAFTA 1430:1842: Black 1322:2017 (TCJA) 1297:2012 (ATRA) 415:Reciprocity 397:Adolf Berle 322:Reciprocity 155:§ 1351 1918:Categories 1506:1948: GATT 1327:2018 (BBA) 1312:2015 (BBA) 1277:2010 (ACA) 1017:1940 (2nd) 519:References 377:logrolling 295:Democratic 291:Republican 182:President 116:Introduced 69:Public law 45:Long title 1870:Huey Long 1627:Criticism 1546:1994: WTO 1177:1986 Code 1077:1954 Code 1007:1939 Code 633:154711958 585:155043044 563:CiteSeerX 484:diplomacy 429:incentive 401:East Asia 373:exporters 369:consumers 303:lobbyists 64:Citations 1898:Category 1636:New Deal 1593:New Deal 902:Internal 488:Cold War 474:and the 354:and the 214:Congress 95:48  1903:Commons 1516:1974/75 1377:Tariffs 1147:Gas Tax 904:Revenue 287:imports 240:History 202:Tariffs 74:Pub. L. 1267:Crisis 631:  583:  565:  511:limit. 395:, and 159:tariff 153:  145:  99:  82:73–316 80:  1167:COBRA 841:. 2. 629:S2CID 581:S2CID 551:(PDF) 498:Notes 143:Stat. 97:Stat. 1531:1988 1526:1984 1521:1979 1511:1962 1452:1875 1449:1872 1440:1857 1420:1832 1317:2016 1307:2014 1302:2012 1292:2011 1272:2009 1262:2008 1252:2007 1247:2006 1242:2006 1237:2005 1232:2004 1227:2003 1222:2002 1212:1998 1207:1997 1202:1996 1197:1993 1192:1990 1187:1988 1182:1987 1172:1986 1162:1984 1142:1982 1137:1981 1132:1980 1127:1978 1122:1977 1117:1976 1112:1975 1107:1971 1102:1969 1097:1968 1092:1966 1087:1964 1082:1962 1072:1954 1067:1951 1062:1950 1057:1950 1052:1948 1047:1945 1042:1944 1037:1943 1032:1943 1027:1942 1022:1941 1012:1940 1002:1937 997:1936 992:1935 987:1934 982:1932 977:1928 972:1926 967:1924 962:1921 957:1918 952:1917 947:1916 942:1914 937:1913 932:1909 927:1894 922:1864 917:1862 912:1861 466:The 137:The 56:the 1803:Act 847:doi 798:doi 621:doi 573:doi 371:or 271:WTO 147:943 101:943 1920:: 843:36 837:. 810:^ 792:. 777:^ 717:^ 627:. 617:49 615:. 593:^ 579:. 571:. 559:53 557:. 553:. 536:^ 391:, 212:, 174:. 149:, 1805:) 1801:( 1585:e 1578:t 1571:v 886:e 879:t 872:v 855:. 849:: 804:. 800:: 794:2 635:. 623:: 587:. 575:: 20:)

Index

Reciprocal Trade Agreements Act
Great Seal of the United States
73rd United States Congress
Pub. L.
73–316
Statutes at Large
Stat.
943
Franklin D. Roosevelt
Stat.
943
19 U.S.C.
§ 1351
tariff
Latin American
Smoot–Hawley tariff
Cordell Hull
Franklin D. Roosevelt
reciprocal trade agreements
American trade policy
trade policy
Tariffs
American Civil War
Great Depression
Congress
Smoot–Hawley Act of 1930
protectionism
Kennedy Round
free trade area
WTO

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