In today's world there are many issues in need of reformation, one of which is international trade, otherwise known as globalization. Although there are great deals of rules, regulations, and policies imposed on international trade, the manner in which those rules have been enforced is a major controversy that seems to be escalating day by day. In globalization, a country acts as a part of a free trading community consisting of member nations around the globe. As a trading community, trade problems can easily be resolved through negotiations rather than a trade war (McConnell 104-105). The US government employs the use of protective tariffs and export subsidies to protect and aid domestic industry.
The American Revolution through 1820, trade policy was used to support the nation’s independence, and imports from Europeans countries were periodically restricted to reinforce international positions and secure American rights. From 1820 to 1943 trade and tariff policy was governed by domestic political considerations, and congress reigned supreme. Tariff bills were the major item of congressional business; Congress typically responded to industry demands for protection by imposing high duties on import. (Government and Business: American Political Economy in Comparative Perspective. Pg 281-282)
At the center of the controversy is the World Trade Organization (WTO). The WTO was established in 1995 in order to transform the General Agreement on Tariffs and Trade (GATT) into an enforceable global commercial code. Traditional international trade involves a complex system of trade barriers to ensure the protection of domestic industry and its workers interests. The trade impediments and subsidies include prote ...