Policy Response to Countertrade and the U.S. Trade Deficit: An Appraisal

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At present, the United States has not clear and consistent policy stance on international countertrade, when addressing the problem of the trade deficit and export promotion. This paper evaluates the U.S. government attitudes toward countertrade and examines the potential contribution it could make toward promoting U.S. exports. In the face of huge trade deficits, any policy measures that either will promote exports or remove various disincentives to export competitiveness should not be eschewed. Countertrade is an area that deserves serious examination.

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