The trade policy of the 1990’s emphasized free trade whereby the United States advocated for an open trading system that allowed countries to trade fairly and without discrimination. America agreed that free trade was advantageous to all trading countries. The trading policies highlight the comparative advantage of specialization in production of goods and services that a country can make efficiently and then trade the good with other countries for what they do not have a comparative advantage.
United States traded in agricultural products especially grains and The 90’s were characterized by the US advocating for trade rules that allowed each trading partner to compete in the market. Several open market agreements such as the Uruguay round and US-Canada FTA were completed which made a trade the building block anticipated by economists. Adaptation of the Washington consensus growth technique provided the US with unforeseen opportunities which led to the growth of the debate on domestic trade. (Brainard, 2001). America hence winded up the decade in an uncontested position of dominance on the global scene but overwhelmed by opposition to trade characterized by various trade barriers.
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Among the major trade barriers in the 1990’s in the United States was corruption where by foreign government officials received bribes to offer trade advantage to certain countries. The benefits of such a practice were only felt by the bribing country on trades with the country from which officials had received bribes. Trade with other countries, however, received more blockages for trade and trade became costly for others. The other major barrier of the 90’s is regulation imposed on imports by other countries. Countries imposed strict regulations on their industries that made it hard for exports to enter their markets. These included high taxes for foreign goods and subsidies for local goods which made acquiring foreign goods expensive. This was beneficial for the growth of local industries. However, United States advocated for deregulation of industries to regulations that offered transparency and did not depress foreign companies (InfoUSA, n.d).
Free trade agreements of the 1990’s regulated taxes and tariffs imposed by countries on their industries hence providing trade barriers. These trade barriers provided trade with both advantages and disadvantages. Some of the advantages were such as the reallocation of funds from removed subsidies and direct investment of foreign companies into other countries. The barriers to trade also presented disadvantages such as increased laying off of workers by manufacturing companies as cheaper imports became alternatives for the people decreasing demand for local goods and poor working conditions as foreign employers did not emphasize labor protections (Amandeo, 2017).
In conclusion, the 1990’s saw trade as an essential factor for economic performance and as a border of domestic politics, foreign policy and economic policy. This saw emphasizes put by the systems of administration to reinforce and encourage trade by forming agreements that eased the burden on trade by the laws of different countries. This saw the 1990’s seem to achievements in trade and trade policies that are unique through the coming years.
References
Amandeo, K. (2017). Free trade Agreement pros and cons. The balance. Retrieved from https://www.thebalance.com/free-trade-agreement-pros-and-cons-3305845.
Brainard, L. (2001). Trade policy in the 1990’s. Brookings . Retrieved on 13 June 2017 from https://www.brookings.edu/research/trade-policy-in-the-1990s/.
InfoUSA. (n.d). Foreign trade and global economic policies. Bureau of International Information Programs (IIP), U.S. Department of State . Retrieved on 13 June 2017 from https://www.ait.org.tw/infousa/zhtw/DOCS/OutlineEconomy/chap10.html.
