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The Prophecies of the Naysayers - Assessing the Vision of the Protectionists in the U.S.-Canada Debate on Agricultural Reciprocity, 1846-1854 AgEcon
Kerr, William A.; Forgrave, Robert J..
Debates over proposals to liberalise international trade are often heated and acrimonious. They are often argued, in part, on the basis of projections of market conditions after the proposed liberalisation. These argument are often important in influencing trade policy decisions, yet their accuracy is seldom assessed after liberalisation takes place. As a result, the projections may be more influential than they should be. This paper examines the projections of protectionists in the debate surrounding a proposed reciprocity agreement between the United States and British North America over the period 1846-1854 as a case study. The protectionist prophesies on both sides of the border were found not to be supported by the evidence from the subsequent period...
Tipo: Journal Article Palavras-chave: Agriculture; Protection; Reciprocity; Trade agreement; International Relations/Trade.
Ano: 2003 URL: http://purl.umn.edu/23917
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Trade Agreements, Political Economy and Endogenously Incomplete Contracts AgEcon
Li, Na; Ker, Alan P..
We develop a political economy model of trade agreements following along the line of Grossman and Helpman (1995a) yet incorporating contracting costs, uncertainty and multiple policy instruments. We show that rent-seeking efforts do not affect tariff rates as they are offset by the substitution effect of domestic production subsidies. Similar to Horn et al (2010), we find the coexistence of uncertainty and contracting costs make optimal trade agreements incomplete contracts. Our model helps explain differential treatment on subsidies, countervailing duties, and the national treatment principle - all key provisions of the current WTO agreement.
Tipo: Working or Discussion Paper Palavras-chave: Trade agreement; Political economy; Contracting cost; Uncertainty JEL Classification:; Agricultural and Food Policy; International Relations/Trade; Political Economy; Public Economics.
Ano: 2011 URL: http://purl.umn.edu/116850
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