Reciprocal Tariff Act

Reciprocal Tariff Act
Short title	Reciprocal Tariff Act
Long title	An Act to Amend the Tariff Act of 1930
Enacted by	United States Congress
Date enacted	June 12, 1934
Signed by	Franklin D. Roosevelt
Date signed	June 12, 1934

Reciprocal Tariff Act was a significant piece of legislation passed by the United States Congress and signed into law by Franklin D. Roosevelt on June 12, 1934, with the aim of reducing tariffs and promoting international trade. The Act was a key component of the New Deal policies implemented by Roosevelt Administration, which included the National Industrial Recovery Act and the Agricultural Adjustment Administration. The Reciprocal Tariff Act was influenced by the ideas of Cordell Hull, the United States Secretary of State, who believed in the importance of reducing trade barriers to promote economic growth and stability, as seen in the London Economic Conference and the World Economic Conference. The Act was also supported by Henry A. Wallace, the United States Secretary of Agriculture, who recognized the need to increase agricultural exports, such as wheat and cotton, to countries like Canada and Australia.

Introduction

The Reciprocal Tariff Act was introduced in the United States House of Representatives by Robert L. Doughton, a Democratic representative from North Carolina, and in the United States Senate by Key Pittman, a Democratic senator from Nevada. The Act was designed to promote reciprocal trade agreements between the United States and other countries, such as United Kingdom, France, and Germany, with the goal of reducing tariffs and increasing international trade. The Act was influenced by the ideas of Adam Smith, David Ricardo, and John Maynard Keynes, who argued that free trade was essential for economic growth and development, as seen in the General Agreement on Tariffs and Trade and the International Trade Organization. The Reciprocal Tariff Act was also supported by Herbert Hoover, the 31st President of the United States, who recognized the need to reduce trade barriers to promote economic recovery, as seen in the Smoot-Hawley Tariff Act.

History

The Reciprocal Tariff Act was passed in response to the Great Depression, which had led to a significant decline in international trade and a rise in protectionist policies, such as the Smoot-Hawley Tariff Act. The Act was also influenced by the London Economic Conference, which was held in 1933 and attended by representatives from United States, United Kingdom, France, and other countries, including Canada, Australia, and Germany. The conference aimed to promote international cooperation and reduce trade barriers, as seen in the World Economic Conference and the Bretton Woods Conference. The Reciprocal Tariff Act was signed into law by Franklin D. Roosevelt on June 12, 1934, and was implemented by the United States Tariff Commission, which was established by the Tariff Act of 1913 and included representatives from the United States Department of State, the United States Department of Commerce, and the United States Department of Agriculture.

Provisions

The Reciprocal Tariff Act authorized the President of the United States to negotiate reciprocal trade agreements with other countries, such as Canada, Mexico, and Brazil, with the goal of reducing tariffs and increasing international trade. The Act also established the United States Tariff Commission, which was responsible for investigating and reporting on the effects of tariffs on international trade, as seen in the Tariff Act of 1930 and the Trade Agreements Act of 1934. The Act included provisions for the reduction of tariffs on certain goods, such as agricultural products and manufactured goods, and allowed for the negotiation of trade agreements with countries like United Kingdom, France, and Germany. The Reciprocal Tariff Act also included provisions for the protection of intellectual property rights, such as patents and trademarks, as seen in the Paris Convention for the Protection of Industrial Property and the Berne Convention.

Impact

The Reciprocal Tariff Act had a significant impact on international trade and the United States economy. The Act led to a reduction in tariffs and an increase in international trade, as seen in the trade agreements negotiated with countries like Canada, Mexico, and Brazil. The Act also promoted economic growth and stability, as seen in the Gross Domestic Product of the United States, which increased significantly during the 1930s, as well as the unemployment rate, which decreased significantly during the same period. The Reciprocal Tariff Act also influenced the development of international trade institutions, such as the General Agreement on Tariffs and Trade and the World Trade Organization, which were established to promote free trade and reduce trade barriers, as seen in the Doha Development Round and the Uruguay Round.

Amendments and Repeal

The Reciprocal Tariff Act was amended several times, including the Trade Agreements Act of 1934 and the Trade Expansion Act of 1962, which expanded the authority of the President of the United States to negotiate trade agreements and reduced tariffs on certain goods, such as agricultural products and manufactured goods. The Act was also influenced by the General Agreement on Tariffs and Trade, which was established in 1947 and aimed to promote free trade and reduce trade barriers, as seen in the Kennedy Round and the Tokyo Round. The Reciprocal Tariff Act was repealed in 1962 and replaced by the Trade Expansion Act of 1962, which continued to promote reciprocal trade agreements and reduce tariffs, as seen in the United States trade agreements with countries like Canada, Mexico, and China.

International Implications

The Reciprocal Tariff Act had significant international implications, as it promoted reciprocal trade agreements and reduced tariffs between the United States and other countries, such as United Kingdom, France, and Germany. The Act influenced the development of international trade institutions, such as the General Agreement on Tariffs and Trade and the World Trade Organization, which aimed to promote free trade and reduce trade barriers, as seen in the Doha Development Round and the Uruguay Round. The Reciprocal Tariff Act also promoted economic cooperation and stability, as seen in the Bretton Woods system and the International Monetary Fund, which were established to promote international economic cooperation and stability, as well as the World Bank, which was established to promote economic development and reduce poverty, as seen in the Millennium Development Goals and the Sustainable Development Goals. The Act also influenced the development of regional trade agreements, such as the North American Free Trade Agreement and the European Union, which aimed to promote free trade and economic integration among member countries, as seen in the Single European Act and the Maastricht Treaty.

Category:United States federal legislation