Trade Relations with Latin America

Report Outline
Initiation of Conversations on Trade Reciprocity
Trade of the United States with Latin America
Prospects of Developing Reciprocal Relations
Current Trade Proposals and Pan Americanism
Special Focus

Initiation of Conversations on Trade Reciprocity

The Initial Move toward carrying out the Democratic platform's advocacy of “reciprocal tariff agreements with other nations” was made on July 12, 1933, when the State Department asked the diplomatic representatives in Washington of Argentina, Brazil, and Colombia for the views of their governments on a proposal by President Roosevelt that “exploratory studies” be undertaken to ascertain the possibility of negotiating trade agreements with those countries. The administration's offer received an immediate favorable response. Preliminary conversations with Brazil and Colombia, and also with Cuba, were begun a few weeks later, and similar discussions with Argentina were initiated in the latter part of September.

The July overtures to nations which are leaders in the Latin-American trade with the United States occurred at a time when it had become evident that no important agreements on trade or tariff policy would emerge from the World Monetary and Economic Conference then in session at London. They were interpreted in some quarters as the reply of the administration to failure of the efforts there expended to achieve international economic collaboration on a broader scale. Although Sweden and Portugal were also invited to confer, it was contended that interest really was concentrated on development of closer trade relations with Latin America. Whether or not there was any political significance in the move, the fact remains that the Latin-American countries, exporting chiefly raw materials and importing manufactured goods, present the most promising opportunites for application of a policy of reciprocity by the United States. If the conversations with the countries first approached make satisfactory progress, other Latin-American republics will doubtless be asked to engage in similar studies.

Democratic Attitude on Policy of Tariff Reciprocity

The Democratic tariff bill passed by the 72nd Congress and vetoed by President Hoover, May 11, 1932, requested the President to negotiate “reciprocal trade agreements under a policy of mutual tariff concessions.” During his pre-election campaign, Roosevelt advocated international negotiations in which the United States would consent “to reduce to some extent some of our duties,” in order to obtain “a lowering of foreign walls,” as the “first and most desirable” method of bringing about reductions in tariffs. In his inaugural address he said he would “spare no effort to restore world trade by international economic readjustment,” but added that “our international trade relations, though vastly important, are in point of time and necessity secondary to the establishment of a sound national economy.”