The US trade policy and global relations have changed drastically over the years in response to the country’s needs and international trade. The US trade policy has always sought to promote US competitiveness and economic growth in multiple ways. As the trade policy changes with time, so does the question of its effectiveness and global impact arise. As such, I am writing this letter to showcase the impacts of the US trade policy and global relations on the global scale in terms of logistics and transportation strategies.
The US trade policy has made it possible for trade to grow and flourish. The policy’s provision of reducing global investment and trade barriers coupled with the rise in globalization has brought numerous benefits in the trade sector (Congressional Research Service, 2020). American firms can outsource their services to reduce the cost of manufacturing which helps them increase their proceeds. The trade policy facilitates export promotion and controls, determining how imports and exports are carried out in the country (Congressional Research Service, 2020). It further outlines trade preferences, investments and customs, trade remedies and adjustments. All these significantly determine the global logistics and transportation strategies that are employed. For instance, export promotion and controls affect global logistics and transportation strategies to determine strategic exports to the US (Congressional Research Service, 2020). This, in turn, encourages the development of effective systems to facilitate the effective transportation of these products.
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The US global relations have significantly affected global logistics and transportation strategies. The need to move components, products, supplies and sub-assemblies, coupled with the need to have immediate, secure and accurate information about the content of every shipment and the arrival time, increases with the increase in global trade (Congressional Research Service, 2020). The US global relations have facilitated these actions as they have created communities of economies that have each other’s best interests at heart. This has, in turn, affected the global logistics and transportation strategies as they seek to be efficient and reliable to facilitate international trade. For instance, countries with duty-free access to the US are developing countries that have fostered their global relations with the country (Congressional Research Service, 2020). This, therefore, makes them eligible for trade preferences which in turn affect the global logistics and transportation strategies. These countries are forced to improve and strengthen their logistical and industrial capabilities to have effective transportation means to facilitate effective trade.
America’s trade policy has also significantly affected global logistics and transportation strategies as it determines laws with which other countries have to operate when exporting products to the country. The trade laws affect global relations as they determine which trade practices are fair and what tariffs are paid (Congressional Research Service, 2020). These, in turn, affect the transportation strategies and global logistics used by different countries as they will want to be cost-effective when bringing products to the country. This ensures that they do not price their products too expensively so that they can compete favorably with the local brands. Therefore, global logistics and transportation strategies will have to be tailored to the US trade policy requirements to make business profitable and ensure continued business between the US and other nations. Moreover, trade policy requirements in the form of freight requirements make global logistics slower, thus affecting when goods arrive in the country (Congressional Research Service, 2020). This, therefore, makes vendors enhance their transportation strategies to ensure they use the most efficient means to ensure timely delivery of goods.
Clearly, the US trade policy and global relations significantly impact global trade, logistics and transportation strategies. Therefore, it is vital to ensure that the trade policy and global relations are as effective as possible as they affect global economies and our economy. Consequently, individuals looking to import or export products to the country should master US trade policy and global relations to ensure they use the most effective global logistics and transportation strategies when conducting international trade.
References
Congressional Research Service. (2020). US trade policy; Background and current issues . https://fas.org/sgp/crs/row/IF10156.pdf
