Displaying items by tag: protectionism

One of the underlying motivations for the American Revolution was to industrialise, and reverse the crippling trade deficit with Britain. Protectionism and trade barriers were the USA's de facto policy for trading until 1947, when it switched to free trade after most of its industrial competitors were wiped out by the war. It signed up to the General Agreement on Tariffs and Trade (GATT), whose overall purpose was to promote international trade by reducing or eliminating trade barriers such as tariffs or quotas, ‘on a reciprocal and mutually advantageous basis’. GATT morphed into the World Trade Organisation (WTO) in 1995, but its original text is still in effect. Pray that current international debates will draw countries back to the roots of GATT and WTO, to reduce or even eliminate trade barriers.