U.S. Trade Policy

As the Clinton administration takes the reins of power in Washington, the United States is still suffering from a sluggish economy and a resurgent $85 billion annual trade deficit. A large portion of that deficit, some experts say, results from the unfair trade practices of other countries, including Japan and West Germany. If the rhetoric of the presidential campaign is any guide, President Clinton's appointees will be more aggressive in negotiations with U.S. trading partners than the Bush administration was. But some analysts warn that the real problems with the U.S. trade deficit can be found right at home -- in the vast federal deficit and in the absence of a strong industrial policy -- and that pointing the finger at other countries won't solve the problems.