Reciprocal Free Trade Agreement

Democrats voted much more in favor of trade liberalization than Republicans, but were not consistent in their preferences. Mp Henry Rainey (D-IL) and members of Roosevelt`s government, Rexford Tugwell, Raymond Moley and Adolf Berle, were skeptical of tariff reductions during the Depression. However, the government decided to use a Democratic-controlled congress and presidency to impose the RTAA. In 1936 and 1940, the Republican Party ran on a platform to lift tariff reductions guaranteed under the RTAA. But when they reclaimed Congress in 1946, they did not act to remove tariffs. In the years since the adoption of the RTAA in 1934, the economies of Europe and East Asia had been decimated by the violence of World War II, which left a huge global production gap filled by American exporters. [2] During the war, the United States had the highest positive balance in its history. Republican preferences for tariffs began to shift as exporters in the home districts began to benefit from stronger international trade. In the 1950s, there was no statistically significant difference between Republicans and Democrats on customs policy, a change that has lasted ever since. [3] This paper examines the impact of reciprocal and non-reciprocal trade agreements on exports from developing countries to industrialized countries, using the most recent data and techniques available to estimate structural gravity and taking into account the direction of export flows from mutual agreements. The use of the data up to 2016 allows us to analyse whether non-reciprocal preferences have been eroded in recent years due to the many reciprocal trade agreements signed between developed and developing countries over the past decade.

The sampling period also includes the revision of the European GSP in 2014, when several middle-income countries lost their preferential access to the European Union. In addition, in line with the results of [10], we are also examining the different potential effects of the two types of agreements on exports from industrialized countries to recipient countries.