Business: Free Trade v. the New Protectionism

AT the highest levels, U.S. Government and business leaders are reappraising the nation's foreign trade policy.

The challenge of Japan is the major reason for this rethinking, but it is not the only one. A feeling has been growing that many nations are taking commercial advantage of the U.S. As a result, the movement toward freer trade

—which the U.S. has championed ever since World War II

—is in danger of stalling. The pendulum appears to be

swinging toward protectionism.

To assess the situation in trade, and to analyze some policy steps that the U.S. could...