Reciprocal Trade Agreements Act Law and Legal Definition
The Reciprocal Trade Agreements Act of 1934 is a U.S federal statute. This Act aims to make provisions for negotiation of tariff agreements between the U.S. and other nations. Through negotiation the Act brings reduction of duties. The provisions of the Act encompass rules for the principal-supplier relationship. The major provisions of the Act later formed the part of the General Agreement on Tariffs and Trade (GATT) Agreement.
Thus Act through reduction in tariff encourages the trade relation between U.S. and other foreign countries.
The Act in fact amended the Tariff Act of 1930 and this Act was later amended by the Trade Expansion Act of 1962.
