Trade Act Law and Legal Definition
The Trade Act of 1974 is an act passed by Congress to promote worldwide reductions in economic barriers to trade, while at the same time protecting and promoting the interests of American-owned businesses.
The President was empowered to negotiate trade agreements with other countries, particularly with regard to multilateral trade negotiations under the General Agreement on Tariffs and Trade (GATT).
Important provisions of the act include:
1.Title II, Section 201- the U.S. President’s authority to take actions to protect the U.S. businesses from injury caused by increased quantities of imports, even though the increase in imports violates no ban on unfair trade practices; and
2.Title III, Section 301- allowing to take retaliatory measures to be taken against imports from countries that injure U.S. economic interests by using unfair trade practices.