1. Progressive Tariff Reductions: Prior to the 20th century, the United States followed a highly protectionist trade policy, characterized by high tariffs on imported goods. However, starting in the early 1900s, there was a gradual trend toward tariff reductions, driven by the belief that freer trade would stimulate economic growth and benefit consumers. The most significant tariff reductions occurred during the 1930s, under the Reciprocal Trade Agreements Act, and after World War II, with the establishment of the General Agreement on Tariffs and Trade (GATT) and subsequent rounds of multilateral trade negotiations.
2. Rise of Free Trade Agreements (FTAs): In recent decades, the United States has shifted from a focus on multilateral trade agreements to negotiating bilateral and regional FTAs. FTAs aim to eliminate or reduce tariffs and other trade barriers between participating countries, and often include provisions on investment, intellectual property protection, and other trade-related issues. Notable FTAs include the North American Free Trade Agreement (NAFTA), the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR), and the United States-Korea Free Trade Agreement (KORUS FTA).
3. Expansion of Trade Promotion Authority (TPA): Trade Promotion Authority (TPA), also known as "fast track," is a legislative tool that allows the President to negotiate trade agreements and submit them to Congress for ratification without the threat of amendments. TPA was first enacted in the 1970s and has been renewed periodically. It seeks to facilitate smoother negotiations and provides assurance to trading partners that agreements reached with the U.S. will not face significant changes during the ratification process.
4. Globalization and Increased Trade: The United States has played a leading role in promoting globalization and increasing trade with other countries. This has led to a significant expansion of U.S. exports and imports, with trade as a percentage of GDP growing substantially over time. The global supply chain has become more interconnected, with many U.S. businesses relying on international sourcing and production.
5. Trade Disputes and Protectionist Measures: Despite the general trend toward freer trade, there have also been instances of trade disputes and the use of protectionist measures by the United States. Examples include the imposition of tariffs on imported steel and aluminum during the Trump administration, as well as the use of trade remedies such as anti-dumping and countervailing duties to address unfair trade practices.
Overall, the United States has shifted toward more open trade policies over the past 100 years, with a focus on reducing tariffs, expanding trade agreements, promoting globalization, and utilizing trade promotion tools. However, there have also been periods of protectionist measures and trade disputes. The future direction of U.S. international trade policy will likely continue to be influenced by a variety of economic, political, and technological factors.