TradeLecture19

TradeLecture19 - Ben Zissimos, Vanderbilt University...

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Unformatted text preview: Ben Zissimos, Vanderbilt University International Negotiations and Trade Policy International integration has increased from the mid-1930s onwards through a process of international negotiations under the General Agreement of Tariffs and Trade (GATT) and, since 1994, the World Trade Organization (WTO). Ben Zissimos, Vanderbilt University The U.S. Tariff Rate International Negotiations and Trade Policy Ben Zissimos, Vanderbilt University How was the removal of tariffs politically possible? A forum must be established through which governments can communicate over the setting of tariff policy. This forum is the GATT/WTO. We have seen that in the absence of communication the government of a large country maximizes the welfare of its citizens by setting a positive (optimal) tariff. Through international negotiation governments can agree on mutual tariff reduction. International negotiations provide a focal point for exporters and other dispersed groups who would gain from freer trade. (The gainers from trade tend to be dispersed while the losers tend to be concentrated.) International Negotiations and Trade Policy Ben Zissimos, Vanderbilt University...
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This note was uploaded on 05/05/2011 for the course CLAS 146 taught by Professor Solomon during the Spring '11 term at Vanderbilt.

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TradeLecture19 - Ben Zissimos, Vanderbilt University...

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