Aggressive Unilateralism: America's 301 Trade Policy And The World Trading System
Since at least the beginning of the Nixon administration some supporters of trade liberalization have advocated an aggressive American trade policy. Others have said the results would be protectionism and bullying. Both views are well represented in this volume focusing on what "is probably the most criticized piece of U.S. foreign trade legislation since the Hawley-Smoot Tariff Act of 1930," as Robert Hudec calls it in one of the most challenging of the several first-rate papers from a 1989 Columbia University conference.
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The 1930s deserve their bad reputation. Unemployment, misery, for many people hunger and, for more, the lack of hope, went with all the other ills of the Great Depression. Then Hitler came to power and fascism around the world grew stronger. The invasions of China by Japan and Ethiopia by Italy, and the Franco rebellion in Spain that soon came to be seen as a kind of global civil war--all showed the way the world was going. Driven by economic pressures, the policies of democratic countries became more narrowly nationalistic; bilateral and preferential trade agreements increased and France, Britain and Holland did what they could to assert privileged positions in their colonies. Although the Soviet Union was hardly a worker's paradise, the very fact that it offered an alternative to collapsed capitalism stirred people's interest and the Kremlin had new cards to play with. The worried democracies, meanwhile, did little to check the rising strength of fascism and were led to make one concession after another. If the times had any redeeming feature, it was that they made people think.
The new president cannot wait until his January 20 inauguration to signal boldly how he will deal with urgent economic problems at home and abroad. He should confront Congress as a tough fiscal conservative on domestic spending and open discussions with German and Japanese leaders on trade, growth, and currency issues.
An economic bnoom is underway in China, and the United States is in danger of isolating itself from the benefits. A forward-looking policy would not only offer tremendous opportunity for American investment,trade and jobs, but it could also be a force for political moderation in Beijing.
