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Coping with OECD Protectionism

Peter C. Y. Chow and Mitchell H. Kellman

in Trade—The Engine of Growth in East Asia

The chapter devotes its attention to the problem of trade protectionism in the OECD countries. The hypothesis that the NICs tended to consistently and skillfully shift their exports towards those ... More

The chapter devotes its attention to the problem of trade protectionism in the OECD countries. The hypothesis that the NICs tended to consistently and skillfully shift their exports towards those that are less subject to trade barriers are explored. It begins by providing a brief overview of the GATT rounds and its measures of protectionism. A sample of 269 manufactured products imported into the U.S. market during that period are utilized by the authors and the findings suggests that although pre-Kennedy round tariffs were found not to discriminate significantly against NIC-sourced products, the post-Tokyo round tariffs did. Further, as this chapter also illustrates through the use of the regression model, during the mid-1960s and the late 1970s, NICs expanded especially in products that fell under the overall categories of textiles or consumer goods—two areas especially sensitive to protectionist sentiment in the United States.Less

Thucydides Dethroned: Historical Differences That Weaken the Peloponnesian Analogy

David K. Richards

in The Next Great War?: The Roots of World War I and the Risk of U.S.-China Conflict

The situation today is different from that faced by Thucydides and the protagonists of World War I. There is now an open trading system and nuclear deterrence is in place. Civilians also lead key ... More

The situation today is different from that faced by Thucydides and the protagonists of World War I. There is now an open trading system and nuclear deterrence is in place. Civilians also lead key nations, not military strategists. Command and control can be compromised today if a leader uses military force to seek advantage. Aristocratic classes no longer rule nations and attacked peoples will likely rebel.Less

Protectionism: Economic Costs, Political Benefits?

Douglas A. Irwin

in Free Trade under Fire: Fifth Edition

This chapter considers the flip side of the case on free trade, in which trade interventions are often misguided and costly. It analyzes tariffs and quotas on imports that inefficiently redistribute ... More

This chapter considers the flip side of the case on free trade, in which trade interventions are often misguided and costly. It analyzes tariffs and quotas on imports that inefficiently redistribute income from consumers to producers. It points out how trade barriers produce a net economic loss due to the costs of consumers exceeding the benefits to producers and reduce exports that harm downstream user industries. The chapter also addresses the question of why trade protectionism is often politically attractive. It examines situations in which protection may be justified in theory, even if governments might be ineffective in trying to take advantage of those situations.Less

Argentina, the US, and China: A New Triangle in the Making?

José Luis Machinea and Lucio Castro

David B. H. Denoon (ed.)

in China, The United States, and the Future of Latin America: U.S.-China Relations, Volume III

While the relative magnitude and characteristics of its trade links with the People’s Republic of China (PRC) are similar to those of the rest of South America, the case of Argentina presents some ... More

While the relative magnitude and characteristics of its trade links with the People’s Republic of China (PRC) are similar to those of the rest of South America, the case of Argentina presents some distinctive features. On the one hand, only Venezuela and Brazil received more Chinese financial assistance than Argentina in the last decade in Latin America. On the other hand, Argentina signed more than 30 agreements with the PRC in 2014 and 2015 granting preferential access to strategic sectors of the local economy to Chinese companies in return for soft financing. Contrastingly, the trade and financial links of Argentina with the US, and to a lesser extent with the EU, have significantly waned in the 2000s. We argue these features of the relation with the PRC are primarily the result of Argentina’s trade protectionism and relative isolation from the international capital markets in this period. We analyze whether the “special relationship” with the PRC is a permanent or structural feature of Argentina´s economy in light of the country’s ongoing economic and political changes.Less