Trade Act of 1974

1) Link to the Text of the Act
Read the statute (19 U.S.C. § 2101 et seq.)

2) Why It Was Done
The Trade Act of 1974 was enacted to give the President fast-track authority to negotiate trade agreements, expand global commerce, and create mechanisms to deal with unfair foreign trade practices.

3) Pre-existing Law or Constitutional Rights
Prior trade laws gave presidents tariff authority, but this Act was the first to create fast-track procedures that limited Congress to an up-or-down vote on trade deals.

It reshaped how the legislative and executive branches share trade powers.

4) Overreach or Proper Role?
Supporters argue it made U.S. trade policy more effective in negotiations. Critics say it ceded too much congressional authority to the President.

5) Who or What It Controls

• Executive branch (empowered to negotiate trade deals)
• Congress (restricted to up-or-down votes)
• Businesses and workers (affected by tariffs, imports, and globalization)
• Foreign partners (negotiate agreements under U.S. terms)

6) Key Sections / Citations

• 19 U.S.C. § 2111: Trade agreement authority
• 19 U.S.C. § 2251: “Escape clause” safeguards for U.S. industries
• 19 U.S.C. § 2411 (Section 301): Authorizes retaliation against unfair trade practices

7) Recent Changes or Live Controversies

• Used in trade deals like NAFTA (1994), CAFTA, and USMCA (2018)
• Section 301 became the basis for tariffs on China under the Trump administration
• Ongoing debates about whether Congress should reclaim more trade authority

8) Official Sources

• Congress.gov – Trade Act of 1974
• U.S. Trade Representative – Trade Law
• 19 U.S.C. § 2101 et seq. – U.S. Code

• Trade
• Economy
• International Commerce
• Tariffs
• Executive Power