1	US and its foreign trade An analysis of how the directions of US trade have altered since it became a nation John Birchall
2	Broad changes - 1 Early history saw Federal government concentrate on domestic economy post ‘crash more attention to free trade and co-ordinating world trade developing own interests And its version of a peaceful world Began post WW2 in commanding competitive position gap narrowed by 1970’s trade deficits began to cause concern
3	Broad changes - 2 Moves to liberalisation but deficits, end of communism and rise of rogue states have prompted protectionism NAFTA has been agreed (1990) Uruguay concluded Financial crises, especially those in South East Asia worried domestic opinion reform seemed to need more international co-operation
4	From protectionism to liberalism US not always an advocate of free trade once promoted protectionism reduced during recession nations cannot produce on a level to sustain their people and well-being Unless they have reasonable opportunities to trade with one another after WW2 the US promoted liberalisation as way of giving the rest somewhere to export to
5	From protect to liberal - 2 US founder member of GATT, now WTO promoted several rounds trade promoted growth, choice, lower prices, competition access to US if reciprocation accepted OECD and US agreed to stop bribing foreign governments to gain orders(1990) US urges de-regulation, privatisation, non discrimination against foreign firms and now environment and labour conditions
6	From protect to liberal - 3 Not all support linking business with ethical issues does allow duty-free agreements with some poorer countries also helps Caribbean countries imposes embargoes Is trade policy an effective way of changing the culture etc of another nation?
7	Multilateralism? US wants other tom follow same principles Kennedy Round 53 nations agreed to cut tariffs by 35% Tokyo Round involved 100 nations and further reduced tariffs Same with Uruguay Round US has also signed narrower, more regional based agreements e.g US-Israel Free Trade Agreement geography now influencing agreements e.g. Mexico
8	Current US Trade Agenda Trade barriers remain high around world. Especially in service and agriculture electronic commerce has opened new questions US wants an Internet tariff-free zone Seeking trade liberalisation with Far East countries (APEC) also looking to Africa with special trade agreements Japan remains a problem allowed China into WTO
9	Trade Deficit Problems with international competitiveness exporting industries increasingly worried changes in dollar value hits trade 1980-85 $ up 40% Interest rates up and this caused further rise in $ 1975 $12.4million trade surplus last in the century foreign lenders continue to support $ but for how long?
10	The $ and the world economy Growth in global trade needs new institutions to control it? Pre WW1 gold standard was the controlling factor then post Bretton Woods the fixed exchange rate system was introduced Lasted till 1971, floating regime came into being balance between surplus and deficit countries maintained by currency transfers leave as it is?
11	The global economy From Bretton Wood came IMF, which was to help balance of payments imbalances(short term) worked reasonably well till 1990’s when debt problems arose Private investment dollar flows led to some countries being left without sufficient import coverage some Tiger economies recorded 9% net growth attracted large flows of FDI
12	The global economy Poor countries problems deepen liberal market conditions imposed by IBRD/IMF privatisation de-regulation end of price controls end of subsidies Balance public sector spending tight monetary and fiscal policies now Civil Society important is developed world imposing values on developing economies?
13	Development World Bank(IBRD and IDA) formed post Bretton Woods 35% of Bank’s capital came from US launched aid programmes(modelled on Marshall Plan) in 1961. USAID now focuses more on small scale projects does aid build new markets for US goods, prevent crises and advance democracy and prosperity?US aid <one-half % of Federal Budget. Worth 50% of 1946 figure