6 Flashcards
Who made the infant industry argument and when?
Alexander Hamilton in 1789
(T/F) The North wanted trade protection and the South wanted free trade.
True.
Smoot Hawley Tariff
tariff rates increased to above 50%, exacerbating the Great Depression.
MFN
Most Favorable Nations clause: all nations will be treated equally as the most favored nation. Part of the 1934 Reciprocal Trade Agreements.
GATT
General Agreements on Tariffs and Trade; created in 1944 and predecessor to the WTO.
Geneva Round
1st round.
Kennedy Round
broad policy; made big cut to manufacturer good tariffs; 60s.
Tokyo Round
softened tariff escalation with tariffs reduction of raw materials and finished goods. Also, agreements to lessen non-tariff barriers like anti-dumping and countervailing duties; 70s.
Uruguay Rounds
GATT becomes WTO. Decreased non-tariff barriers, eliminated tariffs for some goods, and had countries set Bound Rates; 80s-90s.
Doha Rounds
2002-2015. End in failure. Developing nation’s needs weren’t met.
Escape Clause
Temporary, used when US workers are harmed by a sudden increase in imports, usable when US can prove they were harmed, includes Trade Adjustment Assistance.
Trade Adjustment Assistance
helping workers displaced from massive imports to find work in another industry or region.
Countervailing Duty
tariff to offset export subsidies; actually reduces NNW.
Anti-dumping Tariff
tariff to offset dumping.
Section 301
Gives President and USTR sole power to retaliate against unfair trade practices; political tool; can violate WTO.
