Trade Policy
The Bush administration generally pursued free trade policies. Bush used the authority he gained from the Trade Act of 2002 to push through bilateral trade agreements with several countries. Bush also sought to expand multilateral trade agreements through the World Trade Organization, but negotiations were stalled in the Doha Development Round for most of Bush's presidency.
Developing countries blamed the US and the EU for stagnated negotiations since both maintain protectionist policies in agriculture. While generally favoring free trade, Bush has also occasionally supported protectionist measures, notably the 2002 United States steel tariff early in his term. Bush also implemented a 300% tax on Roquefort cheese from France in retaliation for a European Union ban on hormone-treated beef common in the American beef industry.
George W. Bush successfully gained ratification of the Dominican Republic–Central America Free Trade Agreement (DR-CAFTA). Supporters of DR-CAFTA claim it has been a success, but detractors still oppose the agreement for a variety of reasons including its impact on the environment.
In 2005, Ben Bernanke addressed the implications of the USA's high and rising current account (trade) deficit, resulting from USA imports exceeding its exports. Between 1996 and 2004, the USA current account deficit increased by $650 billion, from 1.5% to 5.8% of GDP. Financing these deficits required the USA to borrow large sums from abroad, much of it from countries running trade surpluses, mainly the emerging economies in Asia and oil-exporting nations.
Read more about this topic: Economic Policy Of The George W. Bush Administration
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