international trade

  1. “Power-Based” Bargaining Over Trade: What Has Been the Economic Cost?

    Jul 30, 2020

    The U.S.-China trade war represents a natural experiment in the sense that we have not seen such wide-ranging increases in tariffs since the 1930s, when Congress passed the Smoot-Hawley Tariff Act (Bown and Zhang, 2019).  Not surprisingly, applied trade economists have already conducted in-depth research on the impact of the trade war so far, the most notable being Amiti, Redding, and Weinstein (2019)Alberto Cavallo et al. (2019), and Pablo Fajgelbaum et al. (2020).  This blogpost is a summary of the key results reported in these studies.

  2. "Power-Based” Bargaining Over Trade: Myopic Behavior by the United States?

    Jul 29, 2020

    Analysis of the current administration’s trade policy choices has typically interpreted them in terms of a zero-sum game, i.e., rather than generating mutual benefits in a positive-sum game, international trade is a game where economically, one country is a winner while the other must be a loser (Chow and Sheldon, 2019).  However, there is an alternative explanation for these actions:  the administration has chosen to move from rules-based to power-based bargaining over tariffs as a means of dealing with latecomers to the World Trade Organization (WTO) (Mattoo and Staiger, 2019).  The concern here is that by switching from rules-based to power-based bargaining, the United States is putting the future of the post-war trading system at risk, as well as inflicting economic costs on both itself and its trading partners.

  3. Diverse Group of Experts in Economics, Business and Law to Weigh in on U.S. Trade Policy

    Jan 14, 2019

    There are still open spots for the free conference.  Registration ends on January, 31 2019.