Effects on U.S. Trade
THE ISSUES SURROUNDING trading arrangements between the United States and Latin America are enormously complex because of concurrent pressures for change in world trade. The United Nations Conference on Trade and Development (UNCTAD), institutionalized at Geneva in 1964, has become the agent in the less developed countries' battle to alter the General Agreement on Tariffs and Trade (GATT), which they believe is biased against their trade and in favor of that of the developed countries.
The United States has only recently relaxed its free trade objectives enough to respond to demands for change. Criticized at the 1964 meeting of UNCTAD for its apparent inflexibility, the United States was finally induced to abandon its strictly nondiscriminatory position on world trade. Not only has the United States recognized that a common market arrangement among less developed countries can significantly reduce the cost of import-substituting industrialization, but in 1967 President Johnson stated the country's readiness "to explore with other industrialized countries--and with our own people--the possibility of temporary preferential tariff advantages for all developing countries in the markets of all the industrialized countries."1____________________