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The Good Neighbor Policy The Good Neighbor policy was the idea that the United States should branch away from isolationism and establish relations with Latin American Countries in order to increase trade The US was especially concerned with trade in Latin America because of the problems created by the war between Japan and China which began in 1937 the outbreak of World War II in 1939 and finally with the military and diplomatic efforts necessitated by the entrance of the United States into the war in 1941 This new effort was headed by Roosevelt who acted immediately by giving up the Monroe Doctrine and dedicating the United States to good relations with Latin America in his first inaugural address The extension of US foreign trade was first stimulated by the organization of export-import banks in 1934 through which the government was to make loans to firms intending to increase their sales in foreign countries Trade was also spurred by reciprocal trade agreements between the United States and foreign countries for the lowering of tariff duties Between 1934 when Congress authorized the making of such agreements by the executive without congressional approval and 1939 Secretary of State Cordell Hull concluded 21 such reciprocal trade agreements This policy under the Roosevelt Administration became known as the Good Neighbor Policy where amicable relations with the countries of Latin America would result in considerable extension of American trade there Roosevelt first gave up the Monroe Doctrine as was necessary to proceed with the Good Neighbor Policy and begin rising out of isolationism Among the measures taken in the Policy were the nullification of the Platt Amendment in 1934 by which the United States since 1902 had exercised a measure of control in the international affairs of Cuba and the ending of US control over the customs system of the Dominican Republic Cordell Hull became secretary of state in 1933 when President Franklin D Roosevelt appointed him Hull did much
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