U.S. Trade Policy: Balancing Economic Dreams and Political Realities

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John M. Rothgeb Jr.

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    Dedication

    Paul Rejai Eminent scholar and friend

    Preface

    As the United States enters the twenty-first century, its trade with other countries plays a more important role than at any other time in its history. Trade is at the heart of American participation in a rapidly growing global economy. It has become a key element in the construction and maintenance of a prosperous economy that generates jobs, provides access to more goods than ever before, holds inflation in check, and allows Americans to sustain a standard of living that is the envy of people around the world. Beyond this, trade is increasingly used to sanction countries that engage in behavior the United States regards as unacceptable and to induce others to abide by values such as respect for human rights and the peaceful resolution of international disputes. In short, international trade is of fundamental and growing importance to the health of the American economy, to the American way of life, and to American foreign and national security policy.

    American leadership in promoting international trade is also widely regarded as a key to the growing interdependence that ties many members of the global community to one another and that has led to an unprecedented era of peace and prosperity among many countries around the world. Beginning with the Bretton Woods System, which was set up in the waning days of the Second World War, and continuing through the Kennedy, Tokyo, and Uruguay Rounds of the GATT, the United States has taken the lead in creating the institutions and rules that currently govern international trade. Indeed, many of these institutions and rules can be properly understood only when they are placed in the context of the debate in the United States that led to their creation.

    And yet, despite the undoubted value of trade to foreign policy and its undisputed role in the contemporary international system, it is often a neglected subject in academic discussions and in books designed to teach students about international politics and American foreign and security policy. This book is designed to fill that void by describing the evolution of American trade policy over the past several decades. It begins by discussing the constitutional grants of power and protectionist and isolationist traditions that guided trade policy in the years before the Great Depression. The book continues by considering the major issues that have shaped American policy as the United States has become ever more committed to eliminating trade barriers and building institutions to promote international commerce. It concludes with an analysis of the issues crowding the current American trade policy agenda.

    To facilitate the understanding of the linkages between trade and foreign and security policy, this book places its subject matter in the broader strategic and political context that shapes the American response to the international issues it confronts. Among all the problems U.S. foreign policy decision makers face, trade is perhaps the most political. Trade decisions involve high stakes: any move toward promoting or restricting imports and exports affects billions of dollars in goods and services and has serious implications for the fate of millions of workers at home and abroad. In addition, decision makers often have strongly held ideological beliefs about the value of trade and its effect on local culture. Beyond this, trade frequently is regarded as a valuable tool in the arsenal of weapons available to policy makers as they work to resolve international disputes. Trade policy is therefore intricately bound to the political and military questions that confront U.S. policy makers.

    In addition to linking trade to strategic and political issues, this book shows how deeply trade policy is affected by the interest groups that dot the American political landscape and how it is enmeshed in the larger institutional struggle between the president and Congress for control of American foreign policy. The examination of American trade policy provides students with an opportunity to see how international and domestic political forces interact to affect policy. Studying trade policy also provides an instructive lesson in just how much the traditional lines separating foreign and domestic policy have been obscured in the global political system of the new millennium.

    Acknowledgments

    Several people played important roles as I prepared this book. I received editorial assistance from my wife, Sue; my mother, Carrie Lee; and my son, John, who read early versions of several chapters and offered helpful comments. Two graduate students at Miami University also provided valuable assistance. Chris Kelley helped me to set up and maintain the several computers I used when working on the project, and Benjamas Chinapandhu collected most of the information that I used when writing Chapter 9. Both have bright futures as scholars. In addition, the editorial team at CQ Press, including Charisse Kiino, Amy Briggs, and Belinda Josey, has been a model of professionalism, and Sabra Bissette Ledent provided valuable editorial support. Finally, I thank those who reviewed the manuscript and helped me to improve it: Kerry Chase at Tufts University, John Conybeare at the University of Iowa, Rick Doner at Emory University, Maurice A. East at George Washington University, Alan E. Kessler at the University of Texas at Austin, Stephen J. Silvia at American University, and David Skidmore at Drake University.

  • Glossary

    • ad valorem Procedure for calculating tariffs that is based on the value of the goods entering a country. Chap. 3
    • African Growth and Opportunity Act Law passed in 2000 during the Clinton administration to provide special trade privileges and assistance to sub-Saharan African countries. Chap. 9
    • American Selling Price (ASP) Procedure established in 1922 that allowed the president to base the calculation of some tariffs on the amount it would cost American producers to make a similar good. Chap. 3
    • Anti-Dumping Act A 1921 law that established procedures to protect American businesses from the sale of goods in the United States at prices below normal value. Chap. 5
    • balance of trade Difference between the value of a country's exports and imports. Chap. 2
    • barrel The 52-gallon unit of measure for crude oil. Chap. 7
    • barter trade Arrangement in which countries agree to exchange specific quantities of goods instead of selling goods for cash. Chap. 3
    • Battle Act Formally known as the Mutual Defense Assistance Control Act of 1951, a law that allowed the president to prohibit exports of strategic goods to communist countries and to terminate aid to countries that did not go along with American trade restrictions. The law applied in both war and peace. Chap. 5
    • Bretton Woods System International organizations created at a conference in Bretton Woods, New Hampshire, in the closing months of World War II to facilitate post war international commercial activity. See International Monetary Fund and World Bank (International Bank for Reconstruction and Development). Chap. 4
    • Cairns Group Fourteen food-exporting countries that cooperated with one another during the Uruguay Round of the GATT talks in an attempt to lower agricultural trade barriers. Chap. 8
    • Cannon Amendment A 1950 addition to the Foreign Assistance Act of 1948 that applied whenever American forces fought under United Nations command and gave the president the authority to halt trade with any country that traded with the Soviet Union. Chap. 5
    • capitalism Economic system in which commercial activity is based on competition between and among those who produce and purchase goods and services. Chap. 2
    • cash and carry Neutrality legislation first passed in 1937 that permitted American companies to sell goods to belligerent countries on the condition that the purchasing country paid for the goods immediately and transported the goods in its own ships. Chap. 4
    • Common Agricultural Policy (CAP) Plan established for European farmers in the early 1960s by the European Economic Community. It provides protection from imports, income guarantees, and assistance to help make European farm exports competitive. Chap. 6
    • competitive tariff Tax designed to ensure that imports do not sell for less than what American producers charge for similar products. Chap. 3
    • Coordinating Committee for Multilateral Export Controls (CoCom) Secretive organization set up by the United States and its Cold War allies to regulate restrictions on trade with communist countries. Chap. 5
    • countervailing duties Fees collected by the customs officials of an importing country to offset subsidies that the government of an exporting country may pay to its exporters. Chap. 5
    • dumping Term applied to a situation in which foreign producers offer products for sale in the United States at prices that are below normal value in an attempt to take markets away from American businesses. Chap. 5
    • economic warfare Term applied to situation in which all trade with a country is terminated because of the fear that commercial contacts of any kind will enhance the military capabilities of the other society. Chap. 5
    • Enhanced Initiative on Deregulation and Competition Policy Negotiations with Japan conducted by the Clinton administration to eliminate Japanese administrative and other regulations that inhibit trade. Chap. 9
    • escape clause Provision in American trade law and under Article XIX of the General Agreements on Tariffs and Trade that allows any party to a trade agreement to temporarily withdraw from the agreement in order to give domestic producers a chance to adjust to international competition. Chap. 5
    • Export Control Act of 1949 Law giving the president the authority to restrict exports in peacetime. The act was designed to limit exports to communist countries. Chap. 5
    • fast-track Procedure under which Congress pledges to vote on trade deals, without amendments, within sixty days after they are sent to Congress. Chap. 6
    • favorable balance of trade Term applied to the situation in which the value of a country's exports exceeds the value of its imports. Chap. 2
    • Framework Talks Negotiations conducted with Japan by the Clinton administration to open the Japanese market to American autos and auto parts, medical technology, services, and telecommunications equipment. Chap. 9
    • free trade Term applied to a situation in which governments refrain from creating political barriers to international commerce. Chap. 2
    • Free Trade Area of the Americas (FTAA) Project launched by the Clinton administration in 1994 to expand the North American Free Trade Agreement to include other countries in the Western Hemisphere. Chap. 9
    • GATT codes Provisions in the Tokyo Round of the General Agreement on Tariffs and Trade that set rules for regulating nontariff barriers to trade. Chap. 6
    • General Agreement on Tariffs and Trade (GATT) Set of rules and procedures set up in 1947–1948 to regulate both negotiations to lower trade barriers and international commercial exchanges. Chap. 4
    • generalized system of preferences (GSP) Rules of the General Agreement on Tariffs and Trade under which lower-than-normal tariff rates are applied by advanced countries to goods coming from developing countries. Chap. 6
    • graduation Procedure under the General Agreement on Tariffs and Trade rules that determines when a developing country is no longer eligible for special low tariff rates. Chap. 6
    • Imperial Preference System Agreement established in 1932 that created privileged trading relationships within the British Empire and Commonwealth. Chap. 3
    • import substitution Policy that uses trade barriers to encourage the local production of goods formerly bought abroad. Chap. 2
    • intellectual property rights The privileges producers receive from the patents, copyrights, and trademarks they hold. Chap. 8
    • interdependence Situation in which differing societies become reliant on one another for the production and distribution of goods and services. Chap. 7
    • International Energy Agency (IEA) International organization created in 1974 to help countries cooperate in handling international energy emergencies. Chap. 7
    • International Monetary Fund (IMF) International organization created at the Bretton Woods conference in the closing months of World War II to maintain a fixed exchange rate system between the world's major currencies and to finance balance-of-payments problems. Chap. 4
    • International Trade Commission (ITC) New name given to the Tariff Commission in the Trade Act of 1974. The ITC, a U.S. government agency, conducts trade investigations and holds hearings to determine when protection should be granted to American producers. Chap. 6
    • International Trade Organization (ITO) Proposed international organization that would have created and maintained rules for regulating world commerce. Negotiated in the late 1940s, the ITO died when the U.S. Congress refused to permit American membership. Chap. 4
    • internationalism Political tradition built on the belief that the United States is best served by policies that emphasize a high degree of involvement with the rest of the world. Chap. 1
    • isolationism Political tradition built on the belief that the United States is best served by policies that minimize American involvement with the rest of the world. Chap. 1
    • Jackson-Vanik Amendment Provision in the Trade Act of 1974 that required communist countries to grant their citizens the freedom to emigrate before the country could receive most-favored-nation status from the United States. Chap. 6
    • Lend-Lease Legislation passed by Congress in 1941 that permitted the president to transfer any defense article to any country when it was in the security interests of the United States to do so. Chap. 4
    • liberalism Political tradition that values free markets, open trade, individual liberty, and limited government. Chap. 6
    • Long-Term Arrangement (LTA) Program negotiated by the United States to restrict cotton textile imports from 1962 until 1967. Chap. 6
    • Market-Oriented Sector-Selective (MOSS) Trade talks between the United States and Japan in the mid-1980s that were designed to reduce Japanese barriers to such American exports as medical equipment and pharmaceuticals, telecommunications equipment, forest products, and electronics items. Chap. 8
    • mercantilism View of commercial activity as subordinate both to the government's accumulation of power and to the overall needs of society as defined by the government. Chap. 2
    • Ministry of International Trade and Industry (MITI) Japanese government agency that regulates that country's participation in international commerce. Chap. 7
    • most-favored-nation (MFN) Agreement to conduct trade on a nondiscriminatory basis. All trading partners covered by a MFN agreement are extended the same trading privileges offered to a nation's best trading partner. Chap. 3
    • Multi-Fiber Arrangement (MFA) Orderly marketing arrangement created in 1974 that set quotas on almost all types of textile exports to nearly every market in the world. Chap. 6
    • National Defense Act of 1940 Legislation that permitted the president to restrict American exports whenever it was in the security interests of the United States to do so. Chap. 4
    • national treatment Guarantee that foreign products and business subsidiaries will not be subject to legal discrimination. Chap. 8
    • neutrality laws Series of laws passed by Congress between 1935 and 1939 that attempted to prevent U.S. participation in foreign wars by limiting American trade with belligerent countries. Chap. 4
    • New Economic Policy (NEP) Policy announced by President Richard Nixon in August 1971 that included a wage and price freeze, a suspension of the convertibility of the dollar into gold, and a 10 percent surcharge on imports. Chap. 6
    • nontariff barriers (NTBs) Administrative, safety, health, and other regulations that are used to obstruct trade in the absence of tariffs. Chap. 6
    • normal trade relations (NTR) Term created by Congress in 1998 to replace the term most-favored nation. Chap. 9
    • normal value Term applied in a situation in which a foreign good is sold in the United States for the same price that is charged in its home market or other export markets or for a price that adequately reflects the cost of production and distribution. Chap. 5
    • North American Free Trade Agreement (NAFTA) Agreement concluded in 1993 among the United States, Canada, and Mexico to eliminate trade barriers among the three countries. Chap. 8
    • Omnibus Trade and Competitiveness Act of 1988 Law designed to provide the president with enhanced power to fight unfair trade; noted for its Super 301 and Special 301 provisions. Among other things, this act extended fast-track and tightened rules for escape clause, dumping, and subsidies investigations. Chap. 8
    • orderly marketing arrangement (OMA) Agreement that importers and exporters of a product will allocate shares of importers’ markets to each exporter. Chap. 6
    • Organization of Petroleum Exporting Countries (OPEC) International cartel created in 1960 by oil-producing states to regulate the price and production of the oil sold on world markets. Chap. 7
    • peril point Provision in American trade law during the late 1940s and 1950s that called for the Tariff Commission to establish the minimum tariff level below which American producers would be harmed by imports. Chap. 5
    • protectionism Policy that calls for shielding local American businesses from foreign competition by restricting imports. Chap. 1
    • protective tariff Tax designed to raise the price of imports to such high levels that consumers are induced to buy locally made goods. Chap. 2
    • quota Specific numerical limit set by a country on the quantity of a particular item it will import over a specific period of time. Chap. 3
    • Randall Commission Commission established in September 1953 to study all aspects of American trade policy and to recommend policy changes. Formally known as the Commission on Foreign Economic Policy. Chap. 5
    • Reciprocal Trade Agreements Act (RTAA) Law first passed in 1934 that allowed the president to negotiate the reduction of trade barriers with other countries on a product-by-product basis. Congress renewed this legislation several times until 1962. RTAA served as the legal basis for American participation in the General Agreement on Tariffs and Trade. Chap. 3
    • reciprocity Arrangement in which countries reduce trade barriers by equal amounts. Chap. 3
    • scientific tariff Tax on imports designed to ensure that foreigners are not able to undercut the prices American producers charge for similar goods. Chap. 3
    • Section 201 Section of the Trade Act of 1974 that sets the rules under which the escape clause is applied. Chap. 6
    • Section 301 Section of the Trade Act of 1974 that outlines foreign unfair trade practices from which American producers can seek relief. Chap. 6
    • Section 337 Section of the Tariff Act of 1930 (Smoot-Hawley Tariff) that sets up procedures to restrict imports that violate the intellectual property rights of American businesses. Chap. 5
    • Short-Term Arrangement (STA) Program negotiated by the United States to restrict cotton textile imports. Remained in effect from October 1961 until September 1962. Chap. 6
    • Smithsonian Agreement Agreement reached in December 1971 during a conference of advanced industrialized countries in Washington, D.C., that devalued the dollar by 10 percent. Chap. 6
    • Special 301 Provision of the Omnibus Trade and Competitiveness Act of 1988 that requires the U.S. trade representative to identify countries that fail to respect the intellectual property rights of American firms and mandates negotiations to end such abuses. Chap. 8
    • special trade representative (STR) Presidential appointee in the executive branch who is charged with conducting trade negotiations and advising the president on trade matters. Now known as the U.S. trade representative (USTR). Chap. 6
    • strategic embargo Prohibition of trade that has direct military implications. The commercial exchange of nonmilitary goods is usually allowed. Chap. 5
    • Structural Impediments Initiative (SII) Negotiations between the United States and Japan in 1989 and 1990 that aimed to open Japanese markets to American products by changing public policies and business practices that were regarded as stunting trade. Chap. 8
    • subsidies Payments provided by a foreign government to its exporters, allowing them to sell their goods in foreign markets at abnormally low prices. Chap. 5
    • Super 301 Provision of the Omnibus Trade and Competitiveness Act of 1988 that requires the U.S. trade representative to identify countries and practices that abuse fair trade and mandates negotiations to end those abuses. Chap. 8
    • tariff Tax collected on goods entering a country from abroad. Chap. 2
    • Tariff Commission U.S. government agency created in 1882 to investigate the trade practices of other countries and to provide advice to the president and Congress. Name changed to the International Trade Commission in 1974. Chap. 3
    • Trade Act of 1974 Major trade law that established the fast-track procedure for trade agreements, eased escape clause requirements, allowed for the generalized system of preferences for developing countries, conferred cabinet rank on the special trade representative, and renamed the Tariff Commission as the International Trade Commission. Chap. 6
    • trade adjustment assistance Funding provided by the U.S. government to assist American workers, companies, and communities adversely affected by imports. Chap. 6
    • Trade Agreements Act of 1979 Act that wrote into law the results of the Tokyo Round of the General Agreement on Tariffs and Trade. First trade law passed by Congress under fast-track procedures. Chap. 6
    • Trade Agreements Extension Act of 1951 Law that reauthorized the president's authority to negotiate under the Reciprocal Trade Agreements Act program and stripped communist countries of their most-favored-nation status. Chap. 5
    • Trade and Tariff Act of 1984 Law that reauthorized American participation in the generalized system of preferences of the General Agreement on Tariffs and Trade and gave the president the power to negotiate a free trade agreement with Israel. Chap. 8
    • Trade Expansion Act of 1962 Law that authorized the president to participate in the Kennedy Round of the General Agreement on Tariffs and Trade negotiations, established trade adjustment assistance, and directed the president to create the post of special trade representative by executive order. Chap. 6
    • trade policy Rules and procedures that governments use to regulate commerce between their own society and other countries. Chap. 1
    • trade-related intellectual property rights (TRIPs) Guarantee that the patents, copyrights, and trademarks of companies that engage in international trade will be respected. This was one of the primary issues that motivated the United States to call for the Uruguay Round of the General Agreement on Tariffs and Trade talks. Chap. 8
    • trade-related investment measures (TRIMs) Issue negotiated during the Uruguay Round of the General Agreement on Tariffs and Trade talks that involves attempts to guarantee that businesses setting up operations in other countries will not be subject to discrimination. Chap. 8
    • Transatlantic Business Dialogue (TABD) Forum set up by the Clinton administration to allow European and American businesses to work with each other and their governments to promote trade. Chap. 9
    • Transatlantic Economic Partnership (TEP) Ongoing negotiations launched during the Clinton administration to promote U.S.-European cooperation in identifying and reducing trade barriers. Chap. 9
    • transparency Principle that requires countries to publicize their trade rules and the procedures for complying with those rules. Chap. 4
    • unfair trade Defined by Congress as a situation in which a foreign producer or its government manipulates market conditions to its advantage and to the detriment of an American business. Chap. 5
    • Uruguay Round General Agreement on Tariffs and Trade negotiations conducted between 1986 and 1994. Established the World Trade Organization, reduced barriers to agricultural trade, set rules for trade in services, and established guidelines to protect intellectual property and foreign investments. Chap. 8
    • variable levy Tax on agricultural imports established in the 1960s to protect farmers in the European Economic Community. Chap. 6
    • voluntary export restraint (VER) agreements Arrangement in which a country limits its exports to a specific foreign market in response to political pressure from a foreign government. Chap. 3
    • windfall profits tax President Jimmy Carter's proposal to tax the profits oil companies would receive from deregulated oil prices. Proceeds from the tax were meant to assist the poor with energy bills and to promote mass transit and energy research. Congress never approved the idea. Chap. 7
    • World Bank (International Bank for Reconstruction and Development) International organization set up in the closing months of World War II to finance recovery from wars and natural disasters and to assist countries with economic development. Chap. 4
    • World Trade Organization (WTO) International organization established in 1995 that regulates trade among its members through the creation and maintenance of rules and procedures that facilitate commercial activity. Chap. 1

    Suggestions for Further Reading

    Classic discussions of nineteenth- and early twentieth-century American trade policy are found in F. W. Taussig, The Tariff History of the United States (New York: Augustus M. Kelley Publishers, 1967); and E. E. Schattschneider, Politics, Pressures, and the Tariff (New York: Prentice-Hall, 1935). More recent treatments of the same period are found in Judith Goldstein, Ideas, Interests, and American Trade Policy (Ithaca: Cornell University Press, 1993); and Carolyn Rhodes, Reciprocity, U.S. Trade Policy, and the GATT Regime (Ithaca: Cornell University Press, 1993). An excellent presentation on free trade is provided by Douglas A. Irwin, Against the Tide: An Intellectual History of Free Trade (Princeton: Princeton University Press, 1996); and the theoretical role special-interest groups play in the trade policy-making process is described in J. A. Frieden, “Invested Interests: The Politics of National Economic Policies in a World of Global Finance,” International Organization 45 (autumn 1991): 425–451; and Ronald Rogowski, Commerce and Coalitions: How Trade Affects Domestic Political Alignments (Princeton: Princeton University Press, 1989).

    Post–World War I trade is discussed in Edward Kaplan and Thomas Ryley, Prelude to Trade Wars: American Tariff Policy, 1890–1922 (Westport, Conn.: Greenwood Press, 1994); and F. W. Taussig, The Tariff History of the United States (New York: Augustus M. Kelley Publishers, 1967). The classic treatment of the Smoot-Hawley Tariff is found in E. E. Schattschneider, Politics, Pressures, and the Tariff (New York: Prentice-Hall, 1935). Cordell Hull's role in trade policy is described in his own book, The Memoirs of Cordell Hull, Vol. I (New York: Macmillan, 1948); and in Michael Butler, Cautious Visionary: Cordell Hull and Trade Reform, 1933–1937 (Kent, Ohio: Kent State University Press, 1998). An interesting explanation of the Reciprocal Trade Agreements Act of 1934 is in Stephan Haggard, “The Institutional Foundations of Hegemony: Explaining the Reciprocal Trade Agreements Act of 1934,” International Organization 42 (winter 1988): 91–119.

    Discussions of isolationism and neutrality are found in Wayne S. Cole, Roosevelt and the Isolationists, 1932–1945 (Lincoln: University of Nebraska Press, 1983); and Robert Divine, The Illusion of Neutrality (Chicago: University of Chicago Press, 1962). America's entry into World War II is discussed by Robert Dallek, Franklin D. Roosevelt and American Foreign Policy, 1932–1945 (New York: Oxford University Press, 1979); and Waldo Heinrichs, Threshold of War: Franklin D. Roosevelt and American Entry into World War II (New York: Oxford University Press, 1988). The creation of the Bretton Woods System is described in Armand Van Dormael, Bretton Woods: Birth of a Monetary System (London: Macmillan, 1978); and Richard N. Gardner, Sterling-Dollar Diplomacy in Current Perspective (New York: Columbia University Press, 1980). The controversy over the International Trade Organization is analyzed by Susan A. Aaronson, Trade and the American Dream: A Social History of Postwar Trade Policy (Lexington: University Press of Kentucky, 1996).

    Complete discussions of east-west trade restrictions are found in Philip J. Funigiello, American-Soviet Trade in the Cold War (Chapel Hill: University of North Carolina Press, 1988); and Michael Mastanduno, Economic Containment: CoCom and the Politics of East-West Trade (Ithaca: Cornell University Press, 1992). Eisenhower's position on trade is ably described by Burton I. Kaufman, Trade and Aid: Eisenhower's Foreign Economic Policy, 1953–1961 (Baltimore: Johns Hopkins University Press, 1982). A careful analysis of how Congress handled trade in the 1950s is found in Raymond A. Bauer, Ithiel de Sola Pool, and Lewis Anthony Dexter, American Business and Public Policy: The Politics of Foreign Trade (New York: Atherton Press, 1964). Postwar protectionist measures are discussed in Judith Goldstein, Ideas, Interests, and American Trade Policy (Ithaca: Cornell University Press, 1993).

    A discussion of the Kennedy Round is found in John W. Evans, The Kennedy Round in American Trade Policy: The Twilight of the GATT? (Cambridge: Harvard University Press, 1971); and the Tokyo Round is described in Patrick Low, Trading Free: The GATT and U.S. Trade Policy (New York: Twentieth Century Fund Press, 1993). The role of the special trade representative is discussed in Steve Dryden, Trade Warriors: USTR and the American Crusade for Free Trade (New York: Oxford University Press, 1995). Nixon's New Economic Policy is analyzed by Joanne S. Gowa, Closing the Gold Window: Domestic Politics and the End of Bretton Woods (Ithaca: Cornell University Press, 1983).

    Detailed discussions of the oil industry are found in Daniel Yergin, The Prize: The Epic Quest for Oil, Money, and Power (New York: Simon and Schuster, 1992); and Anthony Sampson, The Seven Sisters, The Great Oil Companies and the World They Shaped (New York: Bantam Books, 1991). American oil policy is described in Dankwart A. Rustow, Oil and Turmoil: America Faces OPEC and the Middle East (New York: Norton, 1982). The effect of the oil crisis on the auto industry is discussed by David Halberstam, The Reckoning (New York: Avon Books, 1986); and the industry's quest for protection is analyzed by Stefanie Ann Lenway, The Politics of U.S. International Trade (Boston: Pitman Publishing, 1985); and Carolyn Rhodes, Reciprocity, U.S. Trade Policy, and the GATT Regime (Ithaca: Cornell University Press, 1993).

    Discussions of Soviet-American trade relations in the 1980s are found in Philip J. Funigiello, American-Soviet Trade in the Cold War (Chapel Hill: University of North Carolina Press, 1988); and Michael Mastanduno, Economic Containment: CoCom and the Politics of East-West Trade (Ithaca: Cornell University Press, 1992). Issues relating to American-Japanese trade are analyzed in Clyde V. Prestowitz Jr., Trading Places: How We Are Giving Our Future to Japan and How to Reclaim It (New York: Basic Books, 1988); and Leonard J. Schoppa, Bargaining with Japan: What American Pressure Can and Cannot Do (New York: Columbia University Press, 1997). The Uruguay Round is described in Ernest H. Preeg, Traders in a Brave New World: The Uruguay Round and the Future of the International Trading System (Chicago: University of Chicago Press, 1995); and Jarod Wiener, Making Rules in the Uruguay Round of the GATT (Aldershot, U.K.: Dartmouth Publishing, 1995). NAFTA is discussed in Raymond Vernon, Debora L. Spar, and Glenn Tobin, Iron Triangles and Revolving Doors: Cases in U.S. Foreign Economic Policy Making (New York: Praeger Publishers, 1991); and Robert A. Pastor, Integration With Mexico: Options for U.S. Policy (New York: Twentieth Century Fund Press, 1993).

    Several U.S. government agencies provide excellent and comprehensive discussions of current American trade policy issues. Three of the best are the annual editions of: U.S. International Trade Commission, The Year in Trade: Operation of the Trade Agreements Program; Office of the U.S. Trade Representative, National Trade Estimate Report on Foreign Trade Barriers; and Office of the U.S. Trade Representative, Trade Policy Agenda and Annual Report of the President on the Trade Agreements Program. These publications are available from the sponsoring agencies. They also are available online at http://www.ustr.gov/ and at http://www.usitc.gov/.


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