Kennedy Round.pdf

The United States has worked to break down trade barriers globally through institutions and agreements, benefiting American consumers, firms, and workers. Despite anxieties and temptations to retreat to economic isolationism, the country has consistently recognized the importance of international commerce to its standard of living and economic growth. Key points include:
1. 70 years of policymakers recognizing the importance of unfettered international commerce, achieving major trade liberalization.
2. The net payoff to America from these achievements has been substantial, with many benefiting from increased trade.
3. Remaining barriers to trade, especially in services, and potential gains from further liberalization are significant, prompting the pursuit of greater economic cooperation and more-open markets.
Historically, the early 1930s marked a critical turning point in modern American trade policy, with the Reciprocal Trade Agreements Act of 1934 departing from previous protectionist policies and beginning the shift toward lower trade barriers and greater global economic engagement. The Act made trade a shared Congressional and Executive Branch responsibility and instituted a bargaining tariff, linking tariff setting to international negotiations. Postwar trade liberalization has been committed to the notion that prosperity and peace go hand in hand, with milestones including the General Agreement on Tariffs and Trade (GATT) in 1947 and subsequent trade agreements.