Economic Interests and Regional Trading Arrangements: The Case of NAFTA
AbstractThis article examines lobbying in the United States on the North American Free Trade Agreement (NAFTA). I argue that economies of scale and production sharing across borders create incentives for firms to seek regional trade liberalization. Statistical analysis demonstrates that sectors with these characteristics were more likely to lobby for free trade in North America; these sectors were also exposed to free trade more rapidly under the tariff-phasing schedule in the NAFTA treaty. However, corporate restructuring to rescale production for the regional market and to increase offshore assembly presented adjustment costs for U.S. workers, which created divisions between labor unions and their employers. I conclude that regional arrangements are an attractive mechanism to liberalize trade for firms in need of larger-than-national markets to take advantage of economies of scale or to develop production-sharing networks.I would like to thank the German Marshall Fund for financial support; Stephanie Gray, Christina Marsh, and Amy Swift for research assistance; Benjamin Bishin, James Glaser, and Alan Kessler for advice and suggestions; Durwood Marshall for programming help with data concordances; and the editors of IO and two reviewers for their comments. Robert Feenstra and Deborah Swenson graciously shared their data on U.S. trade under the Offshore Assembly Program. I owe special thanks to Jeffry Frieden for his steadfast encouragement and valuable feedback on many prior drafts.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Cambridge University Press in its journal International Organization.
Volume (Year): 57 (2003)
Issue (Month): 01 (December)
Contact details of provider:
Postal: The Edinburgh Building, Shaftesbury Road, Cambridge CB2 2RU UK
Fax: +44 (0)1223 325150
Web page: http://journals.cambridge.org/jid_INOProvider-Email:email@example.com
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Cornelia Woll, 2007. "From National Champions to Global Players? Lobbying by Dominant Providers during the WTO’s Basic Telecom Negotiations," Sciences Po publications info:hdl:2441/8527, Sciences Po.
- Cornelia Woll, 2005. "Learning to Act on World Trade. Preference Formation of Large Firms in the United States and the European Union," Sciences Po publications 05/01, Sciences Po.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Keith Waters).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.