The Reciprocal Tariff Act (adopted on 12 June 1934, Chapter 474, 48 Stat. 943, 19 U.C No. 1351) provided for the negotiation of customs agreements between the United States and various nations, including Latin American countries. [1] The law served as an institutional reform to allow the president to negotiate with foreign nations a reduction in tariffs in exchange for a reciprocal reduction in U.S. tariffs. This has led to a reduction in tariffs. The Trade Promotion Authority aims to create opportunities for domestic workers, just as Roosevelt`s RTAA supported job creation on the national territory through trade in New Deal programs. The TPA is an important element of trade negotiations because it allows Congress to define the terms of trade negotiations, consultations at Congress during negotiations and legislative procedures for voting on agreements. Between 1934 and 1945, the United States signed 32 reciprocal trade agreements with 27 countries. [4] In addition, the conclusion of the General Agreement on Tariffs and Trade was taken by the Authority under the RTAA.

RTAA`s authorization was granted for a date of three years from the date of adoption (June 12, 1934) of the RTAA. [5] The authorization was extended to 1937 [6], 1940 [7], 1943 [8], 1945 [9]. In 1934, the Roosevelt administration took two initiatives that expressed a desire to reconnect with the rest of the world economically. The first was the creation of the export import bank. In February 1934, Roosevelt founded the bank as an institution that was to finance American trade with the newly recognized Soviet Union. The following month, he created a second import-export bank to finance trade with Cuba; In July 1934, the scope of the second bank was extended to all countries other than the Soviet Union. In 1935, the two banks were merged and Congress passed a law that conferred more powers and more capital on the newly assembled bank. In the years leading up to the outbreak of World War II, when it extended credit to countries outside the Western Hemisphere such as Italy and China, the import-export bank was concentrated in Latin America, where it proved to be an important part of the policy of the good neighbour. Although the world has changed dramatically since the FDR passed the Mutual Trade Agreements Act, the basic trade promise remains the same.

Well done, trade policy gives American workers the chance to compete in a level playing field, and under the TPA, Congress and the government unite to manage trade with global partners by setting goals and standards that defend American interests and values. The RTAA marked a sharp abandonment of the era of protectionism in the United States. U.S. tariffs on foreign products rose from an average of 46% in 1934 to 12% in 1962. [3] RTAA`s innovative approach freed Roosevelt and Congress from breaking this trend of tariff increases.