RTAA`s authorization was granted for a date of three years from the date of adoption (June 12, 1934) of the RTAA. [5] The authorization was extended to 1937 [6], 1940 [7], 1943 [8], 1945 [9]. Democrats voted much more in favor of trade liberalization than Republicans, but were not consistent in their preferences. Mp Henry Rainey (D-IL) and members of Roosevelt`s government, Rexford Tugwell, Raymond Moley and Adolf Berle, were skeptical of tariff reductions during the Depression. However, the government decided to use a Democratic-controlled congress and presidency to impose the RTAA. In 1936 and 1940, the Republican Party ran on a platform to lift tariff reductions guaranteed under the RTAA. But when they reclaimed Congress in 1946, they did not act to remove tariffs. In the years since the adoption of the RTAA in 1934, the economies of Europe and East Asia had been decimated by the violence of World War II, which left a huge global production gap filled by American exporters. [2] During the war, the United States had the highest positive balance in its history. Republican preferences for tariffs began to shift as exporters in the home districts began to benefit from stronger international trade. In the 1950s, there was no statistically significant difference between Republicans and Democrats on customs policy, a change that has lasted ever since.

[3] The Reciprocal Tariff Act (which came into force on June 12, 1934, Chapter 474, 48 Stat. 943, 19 U.S.C No. 1351) provided for the negotiation of customs agreements between the United States and various nations, including Latin American countries. [1] The law served as an institutional reform to allow the president to negotiate with foreign nations a reduction in tariffs in exchange for a reciprocal reduction in U.S. tariffs. This has led to a reduction in tariffs. As more and more U.S. industries began to benefit from tariff cuts, some of them began campaigning with Congress for lower tariffs. Until RTAA, Congress had been mainly pressured by industries that wanted to create or increase tariffs to protect their industry. This change has also helped to maintain many of the benefits of trade liberalization.

In short, the political incentive to increase tariffs has diminished and the political incentive to reduce tariffs has increased. [3] Reciprocity was an important principle of trade agreements negotiated under the RTAA, as it encouraged Congress to reduce tariffs. As more and more foreign countries have entered into bilateral tariff reduction agreements with the United States, exporters have been more encouraged to promote Congress in favour of even lower tariffs in many sectors. [3] When U.S. tariffs fell dramatically, global markets were also increasingly liberalized. Global trade has undergone a rapid transformation. The RTAA was a U.S. law, but it provided the first widely used system of guidelines for bilateral trade agreements. The United States and European nations began to avoid beggar neighborhood policies that pursued national trade objectives at the expense of other nations.

Instead, countries have begun to realize the benefits of trade cooperation. When President Franklin Delano Roosevelt took office in March 1933, he immediately turned his attention to the domestic economic situation created by the Great Depression. Convinced that the resumption of action would take place at the national level and not abroad, he assured Congress of the passage of a series of far-reaching national economic reforms, which should be known as the first New Deal.