Unpacking the Misconceptions of U.S. Trade Policy in the Late 20th and Early 21st Centuries

In a recent Senate Finance Committee testimony, U.S. Trade Representative Jamieson Greer referred to the "reckless and dogmatic pursuit of 'free trade'" by Washington insiders during the late 20th and early 21st centuries. This characterization has been echoed by his predecessor, Katherine Tai, who spoke of "unfettered liberalization" in the past. However, a closer examination of U.S. trade policy during this era reveals a more nuanced picture, with moderate degrees of protectionism in place. This includes ordinary tariffs, trade remedy tariffs, regulatory protectionism, and buy America government procurement policies.

Key Takeaways:

• U.S. Trade Representative Jamieson Greer's testimony referred to the "reckless and dogmatic pursuit of 'free trade'" by Washington insiders, a characterization echoed by his predecessor Katherine Tai.
• This narrative is misleading, as it ignores the wide range of non-tariff barriers and the role of protectionism in U.S. trade policy during this era.
• Examples of protectionist policies include ordinary tariffs, trade remedy tariffs (AD/CVD/safeguards), regulatory protectionism such as country of origin labeling for beef, protectionist restrictions on international trade in service sectors, buy America government procurement policies, and the Jones Act.
• The use of anti-dumping duties also presents a challenge to calculating tariffs, as high duties can shut down trade in a product and not show up in the tariff schedules.
• Trade agreements during this era often had a "geoeconomic" component, driven by foreign policy considerations, rather than purely free trade.
• The narrative of "unfettered liberalization" or a "reckless and dogmatic pursuit of 'free trade'" does not accurately reflect actual U.S. trade policy during this era.