The reciprocal trade agreements act of 1934

The Trade Agreements act of 1934, like reciprocity measures in general, represents a form of tariff discontent. Recent commercial policies have been highly restrictive, being a phase of the intense economic and political nationalism which developed during and after the World War. The Act authorizes the President within certain limits to enter into reciprocal agreements with foreign powers making mutual trade concessions for the purpose of expanding foreign markets for American products. In carrying out this purpose the Department of State has insisted upon the application of the principle of the most-favored nation treatment in its unconditioned form. Up to May, 1935, trade agreements had been completed with Cuba, Brazil, Belgium and Haiti, and negotiations are in progress with several other countries. The concessions in the treaties aready con cluded are substantial and cover a large part of the commerce between the negotiating parties. The realization of the purpose embodied in the Act will depend in large part upon the number and commercial status of the countries with which agreements are made. One difficulty in bringing negotiations to a successful close is the opposition of numerous small and high-cost industries,