Description
University of Pittsburgh Press Risking Free Trade The Politics of Trade in Britain Canada Mexico and the United States 1996 Edition by Michael Lusztig
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 nationAEs 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: BritainAEs repeal of the Corn Laws; the United StatesAE enactment of the Reciprocal Trade Agreements Act (1934); CanadaAEs decision to initiate continental free trade with the United States in 1985; and MexicoAEs decision to pursue the North American Free Trade Agreement (NAFTA) in 1990.