Reciprocal Trade Agreements Act of 1934
President Franklin Delano Roosevelt signed the Reciprocal Trade Agreements Act (RTAA) into law in 1934. RTAA gave the president power to negotiate bilateral, reciprocal trade agreements with other countries. This law enabled Roosevelt to liberalize American trade policy around the globe. It is widely credited with ushering in the era of liberal trade policy that persists to this day.
Tariffs in the United States were at historically high levels from the post-Civil War period through the 1920s. In response to the Great Depression, Congress accelerated its protectionist policies, culminating in the Smoot-Hawley Act of 1930. The Smoot-Hawley Act was a smorgasbord of high tariffs across many American industries. At the same time, countries in Europe enacted protectionist policies. Many economists believe that these policies worsened the Depression. The RTAA marked a sharp departure from the era of protectionism in the United States. American duties on foreign products declined from an average of 46% in 1934 to 12% by 1962.
Read more about this topic: Reciprocal Tariff Act
Famous quotes containing the words reciprocal trade, reciprocal, trade, agreements and/or act:
“Of course we will continue to work for cheaper electricity in the homes and on the farms of America; for better and cheaper transportation; for low interest rates; for sounder home financing; for better banking; for the regulation of security issues; for reciprocal trade among nations and for the wiping out of slums. And my friends, for all of these we have only begun to fight.”
—Franklin D. Roosevelt (1882–1945)
“Of course we will continue to work for cheaper electricity in the homes and on the farms of America; for better and cheaper transportation; for low interest rates; for sounder home financing; for better banking; for the regulation of security issues; for reciprocal trade among nations and for the wiping out of slums. And my friends, for all of these we have only begun to fight.”
—Franklin D. Roosevelt (1882–1945)
“And there is no trade or employment but the young man following it may become a hero.”
—Walt Whitman (1819–1892)
“The Federal Constitution has stood the test of more than a hundred years in supplying the powers that have been needed to make the Central Government as strong as it ought to be, and with this movement toward uniform legislation and agreements between the States I do not see why the Constitution may not serve our people always.”
—William Howard Taft (1857–1930)
“The Expulsion from Eden is an act of vindictive womanish spite; the Fall of Man, as recounted in the Bible, comes nearer to the Fall of God.”
—Cyril Connolly (1903–1974)