What Is Meant By Reciprocal Trade Agreement

» Posted by on Oct 15, 2021 in Uncategorized | 0 comments

However, the concept of reciprocity in GATT/WTO had a different meaning and was never a bad word. It was an instrument to create incentives for further trade liberalization and to achieve an overall balance of concessions. The RTAA was regularly renewed by Congress until it was replaced in 1962 by the Trade Expansion Act, which President John F. Kennedy sought to give it greater authority to negotiate reciprocal trade agreements with the European Common Market. The Common Market was created in 1957 to remove all barriers to trade in six key Western European countries: France, West Germany, Italy, Belgium, the Netherlands and Luxembourg. Its economic strength, growing pressure on America`s balance of payments, and the threat of a communist aid and trade offensive prompted Congress to pass the Trade Expansion Act. While the U.S. has negotiated item by point, rate by rate in the past, the president could decide in the future to reduce tariffs on an industrial or interterritorial basis for all products, in exchange for similar reductions by other countries. To solve the tariff problems created by the European Common Market, the president was allowed to reduce tariffs on industrial products by more than 50% or eliminate them completely if the United States and the Common Market together accounted for 80% or more of the value of world exports. In the context of reciprocity in trade negotiations, WTO signatories must offer appropriate trade concessions in order to obtain similar concessions from their trading partners. Over time, the concept of reciprocity has taken on a new color and texture, but only for the better.

The participation of developing and least developed countries in trade negotiations requires a moderate dilution or understanding of this concept. The bill also allows the U.S. president to violate sovereign commitments that the U.S. has made in the conclusion of bilaterally negotiated trade agreements. The general concern with the bill is that its intent and purpose are admittedly a blatant disregard for WTO regulations. .

2013 Rededication Sign and Ceremony Thank You Page

Thanks to David Dickey, Tom Hagerty, Chuck Welch, Abhishek Mukherjee, and the Lakeland Library History Room for photos and video.

And a special thanks to every person and organization that reminds Lakelanders about the Frances Langford Promenade.