Risking Free Trade: The Politics of Trade in Britain, Canada, Mexico and the United States

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Overview

There are few issues as politically explosive as the liberalization of trade, as recent controversies in the United States, Canada, and Mexico have shown.  While loosening trade restrictions may make sense for a nation’s economy as a whole, it typically alienates powerful vested interests.  Those interests can exact severe political costs for the government that enacts change.   So why accept the risk?

Michael Lusztig contructs a model to determine why and ...

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More About This Book

Overview

There are few issues as politically explosive as the liberalization of trade, as recent controversies in the United States, Canada, and Mexico have shown.  While loosening trade restrictions may make sense for a nation’s economy as a whole, it typically alienates powerful vested interests.  Those interests can exact severe political costs for the government that enacts change.   So why accept the risk?

Michael Lusztig contructs a model to determine why and under what conditions governments will take the free trade gamble. Lusztig uses his model to explain shifts to free trade in four cases: Britain’s repeal of the Corn Laws; the United States’ enactment of the Reciprocal Trade Agreements Act (1934); Canada’s decision to initiate continental free trade with the United States in 1985; and Mexico’s decision to pursue the North American Free Trade Agreement (NAFTA) in 1990.

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Product Details

  • ISBN-13: 9780822955894
  • Publisher: University of Pittsburgh Press
  • Publication date: 11/28/1996
  • Series: Pitt Series in Political Science
  • Edition number: 1
  • Pages: 180
  • Product dimensions: 6.00 (w) x 9.00 (h) x 0.50 (d)

Meet the Author

Michael Lusztig, professor of political science at Southern Methodist University, is the author of The Limits of Protectionism.

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Table of Contents

Acknowledgments
1 Overview: Why Governments Enact Free Trade 1
2 Why Did Peel Repeal the Corn Laws? 24
3 The New Deal, the Welfare State, and Free Trade 49
4 The Two-Level Gamble: Why Canada Enacted Free Trade 71
5 NAFTA and Solidarity: Institutional Design in Mexico 95
6 Conclusion: High Risks, Low Risks 115
Notes 125
Bibliography 153
Index 175
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