What are the US interests in trade?

Nicole Levesque

April 15, 2018

American Foreign Policy

What are the US interests in trade?  Is it to create a freer, more prosperous world, to satisfy local interests by 'winning' trade, to serve interest groups, or to build a US led world order?  Or is it some combination of the above?

Although this may be cynical, it is possible to view US interests in trade as focused on satisfying local interests by ‘winning trade’.  In cases such as the Truman Doctrine and the Marshall Plan, it appears as though the United States was interested in primarily creating a freer and more democratic world, but one could also interpret these events as efforts to establish a US-led world order in which American values are universal.  The Truman Doctrine encouraged countries at risk of authoritarian rule to shift toward democracy, while the Marshall Plan provided economic incentives for countries to avoid communism.  These policies also encouraged development and arguably led to a freer and more prosperous world, but the main objective for implementing such policies may have been to establish a world in which the United States is a powerful hegemon.  Implementing economic and trade policies aimed at establishing a world order in which the United States is at the top allows the country to satisfy their interests.

The United States’ relations with Latin America—or their geographic sphere of influence—speaks to their self-interest being a priority.  The Monroe Doctrine of 1823 was established to keep powerful European nations like Germany and Great Britain out of the region, while the United States took a leadership role in the creation of the Organization of American States (OAS) to manage development efforts and position themselves as the chair of the region in terms of institutions and norms.  JFK’s Alliance for Progress falls along similar lines, as it provides economic rewards for countries that follow the United States’ policy suggestions, including inflation controls and agrarian reform, both of which relate directly to trade with the regional hegemon.

NATO (the North American Trade Organization), although named a trade organization, is and has been focused on international security since its creation in 1949, especially in the context of the Cold War.  NATO holds a series of requirements for its member states so that they can develop economically and strengthen international trade relationships among like-minded countries, especially in times with significant threats of authoritarianism and/or communism worldwide.  The United States also took on a leadership role in many negotiations in the General Agreement on Tariffs and Trade (GATT), which preceded the World Trade Organization (WTO) as an international regulatory body focused on promoting international trade by reducing barriers and negotiating and creating multilateral international trade agreements.

Currently, the United States’ unwavering desire to control international trade norms and to ‘win’ is evident in President Trump’s decision to introduce tariffs on numerous imported goods, notably from China.  This potential trade war between the United States and highlights the competitive nature of the United States’ trade relationships with other powerful economies.  Now, in a world where the United States is no longer clearly the global economic hegemon, the desire to win and remain at the top has shaped foreign policy.