Login
Copyright

U.S. Trade Policy & Law

An error occurred trying to load this video.

Try refreshing the page, or contact customer support.

Coming up next: International Trade Policy & Strategic Trade Policies

You're on a roll. Keep up the good work!

Take Quiz Watch Next Lesson
 Replay
Your next lesson will play in 10 seconds
  • 0:01 U.S. Trade Policy
  • 0:31 ITA and ITC
  • 2:25 U.S. Trade Laws
  • 4:01 Lesson Summary
Add to Add to Add to

Want to watch this again later?

Log in or sign up to add this lesson to a Custom Course.

Login or Sign up

Timeline
Autoplay
Autoplay
Create an account to start this course today
Try it free for 5 days!
Create An Account

Recommended Lessons and Courses for You

Lesson Transcript
Instructor: Jennifer Lombardo
American industries depend upon the government for protection against imports and to promote domestic exports. In this lesson, you will be exposed to an overview of U.S. trade policy and law.

U.S. Trade Policy

Many American companies depend upon the United States government to protect their industries against foreign competition. In this lesson, you'll receive an overview of U.S. trade policy and law. U.S. trade policy handles the laws regarding the exchange of goods and services with other nations. Congress has the ability to regulate trade, set tariffs and protect domestic business. In addition, they have created an environment, which makes it easier for foreign markets to accept U.S. imports.

ITA and ITC

The Executive Branch, which includes the President, the Department of Treasury, State, and Commerce, and regulatory agencies, has an enormous impact on trade. For example, The Department of Commerce has the International Trade Administration (ITA) (www.trade.gov) and the International Trade Commission (ITC). Both provide support to the administration of U.S. trade law. Their objectives are many, but the common thread is the protection of domestic business.

First off, both the ITA and ITC help develop trade policy by creating a set of regulations that determine the international flow of products with special attention focused on restricting imports and protecting domestic business.

Next, they will participate in Congressional testimony in regards to the protection of domestic business. A recent example had the CEO of a U.S. steel company, in conjunction with the ITC, testifying to Congress over international business concerns. The CEO and ITC were concerned that India, Oman, and Vietnam were dumping cheap welded pipes into the U.S. market, which was causing huge economic problems to the American steel industry. The ITA and ITC also lobby for policy objectives, such as increased protection for international intellectual copyright infringement.

Lastly, both develop relationships with businesses from other countries in order to help domestic business. For example, the International Trade Commission (ITC) has worked to improve business relationships with Africa through trade preference programs and commercial agreements. Africa has seven of the ten fastest growing economies in the world, and U.S. businesses could profit considerably by entering these markets.

In addition, there are trade laws that also protect and assist U.S. industries.

U.S. Trade Laws

The Trade Act of 1974 is the grandfather of all of the trade laws. This law helped the United States expand international business and decrease trade disputes. The act reduced trade barriers, improved trading relationships with developing countries and battled against unfair trading business situations. The biggest success of the law was that it protected American industries that were having difficult economic problems by limiting imports. The automobile and steel industries are two examples that benefited from import relief through the Trade Act of 1974. Later, the Trade Adjustment Assistance Act supplied relief to employees injured by imports by providing job retraining for different work.

There are many other laws that have passed which gave the President and Congress additional powers to protect domestic industries. For example, the Trade Agreement Act of 1979 was passed for an upcoming GATT trade negotiation and provided procedures for fast tracking, or the creation of trade agreements by the President of the United States.

The Trade and Development Act of 2000 created a trade bill that established the African Growth and Opportunity Act (AGOA). The AGOA provided the opportunity of developing business markets with African countries. The U.S. Government will continue to pass additional trade laws that help improve international trade and protect domestic business.

To unlock this lesson you must be a Study.com Member.
Create your account

Register for a free trial

Are you a student or a teacher?
I am a teacher
What is your educational goal?
 Back

Unlock Your Education

See for yourself why 10 million people use Study.com

Become a Study.com member and start learning now.
Become a Member  Back

Earning College Credit

Did you know… We have over 95 college courses that prepare you to earn credit by exam that is accepted by over 2,000 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Create an account to start this course today
Try it free for 5 days!
Create An Account
Support