The Most-Favored-Nation Policy in Relation to Trade Agreements

Francis B. Sayre

American Political Science Review, 1939, vol. 33, issue 3, 411-423

Abstract: The virulent disease which has been attacking and crippling international trade, particularly since 1929, has manifested itself in two different forms. The one is mounting trade barriers, which tend to fence off nation from nation and thus effectively to check the flow of world trade. The other is the practice of discrimination, which nations are using in increasing degree to force markets out of the hands of their competitors or to gain political advantage of one kind or another. If economic stability is to be won and the peace of the world to be made secure, it is just as necessary to overcome the one as the other.The Trade Agreements Act was passed by Congress for the purpose “of expanding foreign markets for the products of the United States.” It is clear that the accomplishment of this purpose necessitates a program with a two-fold objective. The program must seek, first, the reduction or elimination of excessive trade barriers; and second, the elimination of trade discriminations.

Date: 1939
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