Trade Act

Trade Act in International Trade

Meaning of Trade Act, according to the Dictionary of International Trade (Global Negotiator): In U.S. Law legislation granting the President broad authority to enter into international agreement to reduce import barriers. Major purposes are:

Protect American industry and workers against unfair or injurious import competition.

Provide adjustment assistance to industries, workers and communities injured or threatened by increase imports.

Strengthen economic relations with other countries through open and non-discriminatory trading practices.

The Trade Act allows the President to extend tariff preferences to certain imports from developing countries and set conditions under which Most-Favoured-Nations Treatment could be extended to non market economy countries.