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Why Should Trade Negotiators Negotiate About?

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Author Info
Paul Krugman

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Abstract

In recent years there have been growing demands to make trade liberalization contingent on adoption of common labor and environmental standards. The straightforward economic answer is that this makes little sense: neither the gains from trade nor the gains from appropriate regulation are compromised if other countries impose standards that are weaker than your own. It is possible to offer second-bet economic rationales for harmonization, but these are empirically unconvincing. The only serious argument in favor or regulation is political: that regulation which is in the national interest may not be politically feasible unless other countries do the same.

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Publisher Info
Article provided by American Economic Association in its journal Journal of Economic Literature.

Volume (Year): 35 (1997)
Issue (Month): 1 (March)
Pages: 113-120
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Handle: RePEc:aea:jeclit:v:35:y:1997:i:1:p:113-120

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  1. Finger, J. Michael & Reincke, Ulrich & Castro, Adriana, 1999. "Market access bargaining in the Uruguay Round - Rigid or relaxed reciprocity?," Policy Research Working Paper Series 2258, The World Bank. [Downloadable!]
  2. Metcalfe, Mark R. & Beghin, John C., 1999. "Piecemeal Reform of Trade and Environmental Policy When Cosumption Also Pollutes," Staff General Research Papers 4047, Iowa State University, Department of Economics. [Downloadable!]
    Other versions:
  3. Larry Karp & Jinhua Zhao & Sandeep Sacheti, 2000. "The Long-Run Effects of Environmental Reform in Open Economies," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series 818, Department of Agricultural & Resource Economics, UC Berkeley. [Downloadable!]
    Other versions:
  4. repec:att:wimass:19199815 is not listed on IDEAS
  5. Cletus C. Coughlin, 2002. "The controversy over free trade: the gap between economists and the general public," Review, Federal Reserve Bank of St. Louis, issue Jan., pages 1-22. [Downloadable!]
  6. Karp, Larry & Zhao, Jinhua & Sacheti, Sandeep, 1999. "The Uncertain Benefits of Environmental Reform in Open Economies," Staff General Research Papers 4043, Iowa State University, Department of Economics. [Downloadable!]
    Other versions:
  7. repec:att:wimass:1919996 is not listed on IDEAS
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