Reject managed trade. Managed trade represents a growing and dangerous tendency for dealing with the fallout of national competitiveness. Orderly marketing agreements, voluntary restraint agreements or other devices that set quantitative targets to divide up markets are dangerous, ineffective, and often enormously costly to consumers. Rather than promoting innovation in a nation's industries, managed trade guarantees a market for inefficient companies. Government trade policy should pursue open market access in every foreign nation. To be effective trade policy should not be a passive instrument, it cannot respond only to complaints or work only for those industries that can muster enough political clout, it should not require a long history of injury or serve only distressed industries. Trade policy should
seek to open markets wherever a nation has competitive advantage and should actively address emerging industries and incipient problems.