Trade Agreement Vs Treaty

In 1974, Congress made it clear that it thought differently. This year, Congress agreed to a dramatic reduction in its authority and thus in citizens` authority over trade rules. Under the new procedure, the President was allowed to unilaterally negotiate the final terms of a trade agreement. He would then submit the final agreement to Congress, which could in no way modify it and would have limited time for debate. Instead of ratification by a two-thirds majority in the Senate, trade pacts would only need a simple majority of both chambers. As a general rule, the benefits and obligations of trade agreements apply only to their signatories. The most-favoured-nation clause prevents one of the parties to the current agreement from further removing barriers for another country.

October 12, 2021