Legislation: Omnibus Trade and Competitiveness
August 23,1988
Political

POLITICAL EVENT

The Omnibus Foreign Trade and Competitiveness Act ordered the Executive branch to thoroughly examine trade with countries that have large trade surpluses with the United States. If the trade surpluses continued, the offending country would be faced with a bilateral surplus-reduction requirement of 10%. Because of its style of zero-sum game thought, it is considered by economists to be a modern form of mercantilism.