Our commercial policy should hold an equal and impartial hand, neither seeking nor granting exclusive favors or preferences. Throughout history, nations have grappled with the complexities of commercial policy, often oscillating between protectionist measures and free trade principles. The notion of holding an equal and impartial hand in commercial affairs resonates deeply with the fundamental pri

The Argument

Our commercial policy should hold an equal and impartial hand, neither seeking nor granting exclusive favors or preferences. Throughout history, nations have grappled with the complexities of commercial policy, often oscillating between protectionist measures and free trade principles. The notion of holding an equal and impartial hand in commercial affairs resonates deeply with the fundamental principles of fairness and equity in international trade. One compelling justification for this approach can be found in the historical example of mercantilism. During the mercantilist era, nations pursued policies aimed at accumulating wealth through exports and accumulating precious metals. However, this often led to conflicts and trade wars as nations sought to secure exclusive trading privileges and monopolies. In contrast, the principle of impartiality in commercial policy promotes a level playing field for all nations, fostering an environment conducive to peaceful and mutually beneficial trade relations. By avoiding the granting of exclusive favors or preferences, nations can mitigate the risk of provoking trade disputes and retaliatory measures from other countries. Moreover, history offers numerous examples of the detrimental effects of protectionist policies and trade barriers. The Smoot-Hawley Tariff Act of 1930, for instance, exacerbated the Great Depression by triggering retaliatory tariffs and disrupting global trade flows. In today’s interconnected world, where global supply chains and trade networks are increasingly interdependent, the importance of maintaining an equal and impartial commercial policy cannot be overstated. Washington’s admonition to hold an equal and impartial hand in commercial policy offers valuable guidance for navigating the complexities of international trade. By examining historical examples and contextualizing this principle within broader historical trends, this chapter aims to underscore the importance of promoting fair and equitable trade relations for the benefit of all nations.