Two Eastern European Countries Formed A Free Trade Agreement Quizlet

In the Commerce Act of 1974, Congress expanded STR`s responsibilities, gave a legislative charter to the Office, and held STR accountable to the President and Congress. STR`s responsibilities were expanded again in 1979 and STR was renamed the Office of the United States Trade Representative, a White House office headed by the U.S. Trade Representative, a ministerial-level official. While supporting the establishment of the EEC, other European countries feared that their economic interests would suffer, as their exports to these six countries would be discriminated against in relation to the sales of EEC members. As a result, the United Kingdom, Austria, Denmark, Norway, Portugal, Sweden and Switzerland launched the European Free Trade Area in 1960, which would eliminate trade tariffs between them and allow each to maintain its own external right. 54. Hungary has managed to increase trade with CEFTA countries faster than with the EU. Imports are dominated by raw materials and energy, while exports of agricultural products, machinery and other processed goods are not as high. As a result, Hungary has a trade deficit within CEFTA.

However, some of these imports are essential for exports to the West. Today, the United States needs a trade policy that recognizes that trade liberalization can have angles and edges and that liberalization must be consistent with other important national objectives. It must be a policy that not only does not harm, but also seeks to promote other important objectives, where appropriate. Such a policy must take the concerns of critics seriously and respond with constructive action and not just more rhetoric. For two economies of this size whose trade is so important, the EU and the US inevitably face a number of trade disputes that go through the WTO dispute settlement mechanism. Under the Trade Expansion Act, President Kennedy negotiated a major multilateral trade round – the Kennedy Round – which reduced U.S. tariffs on industrial products by nearly a third. The breakthrough came because negotiators agreed on a formula for reducing tariffs that industrialized countries would apply across borders, with limited exceptions, rather than the supply-of-demand approach in previous rounds. But trade policy has also played a huge role. .