About the Briefing
This handout was created for the AHA’s June 29, 2018, Congressional Briefing on the history of trade policy in the United States. Panelists Alfred E. Eckes, Jr. (Ohio Univ.), Susan Ariel Aaronson (George Washington Univ.), and Marc Levinson (Congressional Research Service) provided historical context on debates about the relative merits of protectionism versus free trade in the United States, and how the history of US trade policy can help us to understand the current administration’s trade agenda.
A recording of the briefing is available to watch on C-SPAN.
Colonial America
- British imperial trade policies, known as mercantilism, were protectionist. They subordinated colonial economic interests to the economic interests of Britain.
- Mercantilist policies contributed to growing anti-British sentiment, leading to the American Revolution. The Boston Tea Party is an example of the constraints on free trade that provoked opposition.
Early America
- New federal government introduced tariffs to raise revenues for the operations of a state that had limited means of funding.
Nineteenth Century America
- Pattern of US trade changed with rise of domestic manufacturing industry and export-oriented agricultural sector.
- Protectionism became the tariff’s primary motive: restriction of imported manufactures to protect America’s growing industrial concerns.
- Trade was divisive in American politics: northern manufacturers sought protection of high tariffs on competing imports and southern cotton producers backed open trade policies to promote exports.
- Northern victory in Civil War strengthened protectionist policies.
Twentieth Century America: Prewar Policy
- Smoot-Hawley Tariff Act of 1930
- Raised import duties to protect American business and farmers
- 1934 Reciprocal Trade Agreement
- Reduced tariff levels and promoted cooperation with foreign governments
- Created new bureaucracy to advise Congress on tariffs
- Designed to avoid log rolling, favoritism, and excessive protectionism
Postwar Trade Policy
- Following WWII the US turned in favor of free trade, which favored its foreign policy objectives.
- General Agreement on Tariffs and Trade 1947 (GATT)
- Set of multilateral trade agreements aimed at the abolition of quotas and the reduction of tariff duties among contracting nations
- Played major role in expansion of world trade in second half of 20th century
- World Trade Organization 1995
- Successor to GATT
- International organization established to supervise and liberalize world trade
- Rules Based system: allows balance between protectionism and open markets.
- Imperfect system, weakened by conflicts at WTO, trade liberalization, failure to govern new sectors like digital trade and investment.
Participant Biographies
Alfred E. Eckes, Jr. is Eminent Research Professor Emeritus in History, Ohio University, Athens, Ohio. From 1981 to 1990 Eckes was a Commissioner (Chairman, 1982-1984) on the U.S. International Trade Commission, nominated by President Reagan. He is the author of nine books on economic and international trade history. They include: The Contemporary Global Economy: A History since 1980 (Wiley-Blackwell, 2011); U.S. Trade Issues: A Reference Handbook (ABC-CLIO, 2009); Globalization and the American Century (Cambridge University, 2003) with Prof. Thomas Zeiler; Revisiting U.S. Trade Policy: Decisions in Perspective (Ohio University Press, 2000); and Opening America’s Market: U.S. Trade Policy since 1776 (University of North Carolina, 1995). For nine years between 2004 and 2016, Eckes served as Executive Vice President of the International Trade and Finance Association (IT&FA). He edited its journal, The Global Economy Journal, and was elected the association’s President in 2000.
Susan Ariel Aaronson is Research Professor of International Affairs and GWU Cross-Disciplinary Fellow at the George Washington University’s Elliott School of International Affairs. She is also a Senior Fellow at the Center for International Governance Innovation. She is the author of 6 books and numerous articles. Her books include Taking Trade to the Streets: The Lost History of Public Efforts to Shape Globalization (2001), Trade and the American Dream: A Social History of Post World War II Trade Policy (1996), and Trade Imbalance: The Struggle to Weigh Human Rights Concerns in Trade Policymaking (2007). Dr. Aaronson is a frequent speaker on public understanding of globalization issues and international economic developments. She regularly comments on international economics on “Marketplace” and was a monthly commentator on “All Things Considered,” and “Morning Edition.” She has also appeared on CNN, CNBC, the BBC, and PBS to discuss trade and globalization issues.
Marc Levinson, a research manager at the Congressional Research Service, is also a historian. Among his books are An Extraordinary Time: The End of the Postwar Boom and the Return of the Ordinary Economy, published in 2016, and the prize-winning economic history The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger, published in a second edition in 2016.
