The United States trade policy has encountered various alterations since the late 20th century. These alterations were greatly impacted by power destabilizations and defective markets that encompassed the nation. These are the two major reasons that encouraged the United States to support liberalism in the international market. Judith Goldstein investigates the basis of the United States trade policy in relation to the power relations in the state. In the United States, free trade is known to encourage the participation of many states. This is because free trade often considers the needs of most states in reference to their industrial and economic ability. However, the US is a state that has to solicit help from other countries; this is a reason behind the discretion of free trade. Most countries do not comply with the idea of free trade since there would be many inconveniences about the trade relations of these countries. To combat this fact, there are international co-operations that aid in monitoring whether there is compliance to international trade policies. This is one of the sources of the US trade policy. However, international cooperation may not be entirely constructive in ensuring that member states adhere to trade policy. This is why there needs to be a hegemon. Hegemon is an influential state which creates a free trade system even if it risks non-cooperation from other nations. However, this can be problematic since other states would depend on the hegemon instead of struggling in order to better their condition and the condition of the entire globe.
In the United States, plans for international cooperation in terms of trade policies began taking a new direction in 1934. The president was given the mandate to make decisions on trade without interference from the senate. This encouraged the US participation in international agreements; however, there were not many nations that agreed to alliance with the United States apart from Latin American countries. The efforts of the US in garnering support from other countries saw it join many organizations so as to become a part of the world that agrees on the same trade policies. However, there were many challenges that hindered this process. To begin with, the American strategy on trade seemed to be a hindrance to the international trade rules. For instance, this policy was never embraced by other nations. To aid in solving this problem, the United States devised a way in which other countries could protect themselves from its laws. It allowed Regional Trading Alliances (RTA’S) to form rules that protected its countries from American opportunism.
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The United States was, however, a country that was quick to improvise laws and strategies in order to benefit economically. For instance, during the Cold War, the nation applied two strategies in order to benefit its economy. During the Cold War, the US provided military help to European countries. This help later led to assurance by these countries of their participation in international trade alliances with the US. This was a great benefit to the nation, which later agreed to a number of more RTAs. The US later embraced regionalism that came with the RTAs. The United States is a nation that has struggled to enhance international participation in trade. However, the internal policy and opinions of citizens do not support the fact that the nation does participate in World Trade Organizations. This in turn has become a political problem, in which leaders have to seek support from citizens. This political problem, coupled with other problems facing the United States, has made it hard for the nation to manage trade associations with the entire globe.
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