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Reciprocal Tariff Act: Difference between revisions
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=== Differences between RTAA and other trade agreements === | === Differences between RTAA and other trade agreements === | ||
Before the RTAA, if Congress wanted to establish a lower tariff for particular [[imports]], it would act unilaterally and tackle the foreign country's tariff rate as fixed. Congress would choose a tariff rate that was either a little higher or lower than the median preferred tariff, depending upon the composition of the Congress. Generally, a [[Republican Party (United States)|Republican]]-controlled Congress would prefer higher tariffs, and a | Before the RTAA, if Congress wanted to establish a lower tariff for particular [[imports]], it would act unilaterally and tackle the foreign country's tariff rate as fixed. Congress would choose a tariff rate that was either a little higher or lower than the median preferred tariff, depending upon the composition of the Congress. Generally, a [[Republican Party (United States)|Republican]]-controlled Congress would prefer higher tariffs, and a Democratic-controlled Congress would prefer lower tariffs. Thus, tariffs were chosen based on US [[domestic politics]]. Individual members of Congress were under great pressure from industry [[lobbyists]] to raise tariffs to protect it from the negative effects of foreign imports.<ref name="Bailey"/> | ||
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 [[Majority|simple majority]], as opposed to the [[two-thirds majority]] 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.<ref name="Bailey"/> | 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 [[Majority|simple majority]], as opposed to the [[two-thirds majority]] 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.<ref name="Bailey"/> | ||