The Omnibus Trade and Competitiveness Act of 1988 is an act passed by the United States Congress and signed into law by President Ronald Reagan.

During the 1970s, the U.S. trade surplus slowly diminished and turned into an increasing deficit.

Workers, unions and industry management all called for government action against countries with an unfair advantage.

If the trade surpluses continued, the offending country would be faced with a bilateral surplus-reduction requirement of 10%.

Because of its style of zero-sum game thought, it is considered by economists to be a modern form of mercantilism.