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Ronald Reagan on Free Trade

President of the U.S., 1981-1989; Republican Governor (CA)


US agribusiness subsidies squelched Haitian rice exports

Aristide was also barred [by the US] from providing any protection for the economy. Haitian rice farmers are efficient, but cannot compete with US agribusiness that relies on huge government subsidies, thanks largely to Reagan, anointed as the high pries of free trade with little regard to his record of extreme protectionism and state intervention in the economy. Other small businesses were destroyed by US dumping which Haiti was powerless to prevent under the imposed conditions of economy rationality.
Source: Hopes and Prospects, by Noam Chomsky, p. 11-12 , Jun 1, 2010

1985: Vetoed import tariffs on textile goods

I found myself in a rare, head-to-head confrontation with President Reagan over proposed import tariffs on textile goods--a bill that aided industries already struggling in the US. Mass-produced goods from abroad were making a dent in an indigenous American business whose roots stretched back a century. The proposed tariffs would help protect this industry--including two textile plants in my district, which would benefit directly.

I informed the administration, which opposed the bill, that my support for the legislation prevented me from performing my whip duties. My chief deputy whip and I both recused ourselves.

Still, the bill passed, only to be promptly vetoed by the president. I did lead the drive to override the president's veto in an exhaustive campaign, and we managed to get 276 votes--71 Republicans and 205 Democrats. But it takes 2/3 of the votes to override a president, and our tally of 276-149 fell eight votes short.

Source: Herding Cats, by Trent Lott, p. 91 , Aug 29, 2006

Proposed concept behind NAFTA in 1979

Reagan himself was a dreamer, capable of imagining a world without trade barriers. In announcing his presidential candidacy in Nov. 1979, he had proposed a “North American accord” in which commerce & people would move freely across the borders of Canada & Mexico. This idea, largely overlooked or dismissed as a campaign gimmick in the US, rankled nationalist sensibilities in the neighboring nations. But Reagan was serious in his proposal. Though he traveled only once outside the North American continent during his first 57 years, he was neither insular nor isolationist. California has windows to the world in Asia, and Reagan thought of the US as a Pacific power as well as an Atlantic one. He also had a Californian’s consciousness of Mexico and an actor’s appreciation of Canadians, who are well-represented in the film community. The dream of a North American accord would drive the successful pursuit of a US-Canadian free trade agreement and a future-oriented “framework” trade agreement with Mexico
Source: [X-ref immigration] The Role of a Lifetime, p. 461 , Jul 2, 1991

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Page last updated: Dec 09, 2011