Sectoral Reciprocity

A trade agreement between two countries to reduce or eliminate trade barriers in a certain, strategic category of goods. Sectoral reciprocity is beneficial because greater openness in trade gives people access to more affordable and/or higher quality goods. Also, if such an agreement is successful, it may help pave the way for freer trade in additional areas.

A government might decide to pursue sectoral reciprocity when it wants to participate in an important market. If the United States wanted to be able to sell semiconductors in Japanese markets, they might be able to convince the Japanese to open their markets to this foreign competition by making it easier for Japanese electronics firms to sell their goods in American markets.