subsidies were violently opposed by Japan and Europe, especially France. In1992, following these aggressions, the US and Europe marginally escaped a trade warbecause of US retaliation consisting of the increase of tariffs on European exports likewine and of France’s refusal to accept any measure of change. The Uruguay Round’smost important contribution was a powerful new World Trade Organization (WTO) whichreplaced the outdated GATT organization. Its main function is to set up three memberarbitration panels to decide if countries are violating the agreement, make them correctsuch violations and pay for damages, and even authorize retaliation against violators. Even though America seems to be the only country with a free trade policy,Lindsey argues that this statement is untrue. Import barriers are falling in different partsof the world, including Japan. Between 1968-1988 import growth has skyrocketedseveral times faster for America’s leading trading partners. Merchandise trade among thedeveloped countries more than quadrupled between 1963-1973; increased over two and ahalf times from 1973-1983; and grew almost one and a half times again between1983-1986. From 1960-1986, the percentage of GDP derived from trade (exports plusimports) doubled to 14.4 percent in the US, gained an average of 63 percent in the ECcountries, and remained constant in Japan at 17.3 percent. Specifically, import rises inJapan and West Germany has been almost as large as that of America’s.Even though other countries may be letting down their import barriers, it isnot necessary for the United States to follow suit and further open its doors of economictrade. The American industrial economy is self-sufficient and does not need to rely heavilyon the products of other nations. A good example of the United States shutting its doorsto economic trade is the collapse of the Bretton Woods system. The dismantling of thesystem is a direct r...
