International Organization · 1988 · 155 citations · 38 references
Social SciencesEconomicsInternational RelationsInternational Political EconomyInternational TradeInternational Trade PolicyGlobal Political EconomyTariff PolicyTrade GovernanceTrade LiberalizationTrade PolicyTrade PoliticsInstitutional Analysis And Development FrameworkInternational Trade EconomicsInternational Trade GovernancePolicy Design ProcessPolicy Formulation ProcessPressure PoliticsReciprocal AgreementsTariff Concessions
The 1930 Smoot–Hawley tariff exemplified restrictive protectionism driven by pressure groups, prompting Congress in 1934 to pass the RTAA, which transferred tariff authority to an executive-led process increasingly shaped by internationalist actors. The RTAA aimed to empower the executive to make credible tariff commitments, enabling the U.S. to leverage its market power for trade liberalization.
In 1930, Congress approved the highly restrictive Smoot–Hawley tariff, the textbook case of pressure group politics run amok. Four years later, Congress passed the Reciprocal Trade Agreements Act (RTAA), surrendering much of its tariff-making authority to a policy process in which internationalists had increasing influence. While the United States had used reciprocity to expand exports before, the stick of discriminatory treatment took precedence over the carrot of liberalizing concessions. With the transfer of tariff-making authority to the executive, the United States could make credible commitments and thus exploit its market power to liberalize international trade. Despite later modifications, the RTAA set the fundamental institutional framework for trade politics.
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