A Renaissance for U.S. Trade Policy?

Abstract

U.S. TRADE POLICY has been facing widespread criticism around the world. Under threat of congressional action, the Bush admin istration initiated an investigation of steel imports, imposed tariffs of up to 30 percent on a sizable portion of foreign steel shipments to the United States, and launched an effort to organize global steel production-all within the past year. The administration and Congress have agreed to roll back some apparel imports from the Caribbean and Central America. Sharp new tariffs have been slapped on lumber imports from Canada, a nation with which the United States supposedly has free trade. Both Congress and the president have backed a new farm bill that perpetuates substantial subsidies for U.S. agriculture, even though the United States has railed for years against such practices abroad. All these steps have reinforced the concern that America is pursuing a unilateralist rather than a globally cooperative foreign policy. Moreover, these protectionist initiatives have surfaced at a time when the global trading system is already under severe strain. U.S. trade retaliation against Europe is still in place from a previous dispute over beef. Europe is considering up to $4 billion of counter action against U.S. tax subsidies for exports-a practice found