Reciprocal Trade for Balanced Economic Growth
Introduction
The United States maintains a highly accessible economy with low average weighted tariff rates, promoting global trade. However, persistent trade deficits and unfair practices by trading partners have led to economic challenges.
Policy Objective
The "Fair and Reciprocal Plan" aims to address these imbalances by reducing persistent trade deficits and promoting reciprocal and balanced trading relationships.
Scope of Analysis
The Plan will meticulously examine non-reciprocal trade arrangements, including:
* Tariffs imposed on U.S. products
* Unfair taxes and subsidies imposed on U.S. businesses and consumers
* Nontariff barriers and measures that hinder U.S. access to foreign markets
* Wage suppression or mercantilist policies that disadvantage U.S. businesses
* Other practices that restrict market access or impede fair competition
Comprehensive Fairness and Balance
The Plan will ensure fairness and balance by accounting for losses incurred due to disadvantageous measures, regardless of their classification or documentation status.
Actions and Remedies
Relevant government agencies will initiate investigations into non-reciprocal trade arrangements and propose remedies to establish reciprocal trade relations. The Office of Management and Budget will assess fiscal and public information collection impacts within 180 days.
Definitions
* Value-added tax: A tax imposed on the incremental increase in value of a product or service at each supply chain stage.
* Nontariff barrier or measure: Government-imposed measures or policies that restrict international trade, including import policies, sanitary and phytosanitary regulations, and government subsidies.
General Provisions
This memorandum does not alter the authority of government departments or agencies or impair budget-related functions. Implementation is contingent on available appropriations.