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Fast Track Authority and International Trade Negotiations

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  • Paola Conconi

    ()
    (Université Libre de Bruxelles - ECARES and CEPR)

  • Giovanni Facchini

    ()
    (University of Milan, University of Essex, LdA, CEPR and CES-Ifo)

  • Maurizio Zanardi

    (Université Libre de Bruxelles - ECARES and Tilburg University)

Abstract

Fast Track Authority (FTA) is the institutional procedure in the Unites States whereby Congress grants to the President the power to negotiate international trade agreements. Under FTA, Congress can only approve or reject negotiated trade deals, with no possibility of amending them. In this paper, we examine the determinants of FTA voting decisions and the implications of this institutional procedure for trade negotiations. We describe a simple two-country trade model, in which industries are unevenly distributed across constituencies. In the foreign country, trade negotiating authority is delegated to the executive, while in the home country Congress can retain the power to amend trade agreements. We show that legislators’ FTA voting behavior depends on the trade policy interests of their own constituencies as well as those of the majority of Congress. Empirical analysis of the determinants of all FTA votes between 1974 (when fast track was first introduced) and 2002 (when it was last granted) provides strong support for the predictions of our model.

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Bibliographic Info

Paper provided by Centro Studi Luca d\'Agliano, University of Milano in its series Development Working Papers with number 246.

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Length: 50
Date of creation: 15 Apr 2008
Date of revision:
Handle: RePEc:csl:devewp:246

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Keywords: Fast Track Authority; Trade Negotiations; Strategic Delegation;

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Citations

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Cited by:
  1. Facchini, Giovanni & Silva, Peri & Willmann, Gerald, 2012. "The Customs Union issue: Why do we observe so few of them?," CEPR Discussion Papers 9135, C.E.P.R. Discussion Papers.
  2. Conconi, Paola & Facchini, Giovanni & Steinhardt, Max Friedrich & Zanardi, Maurizio, 2012. "The political economy of trade and migration: Evidence from the US Congress," HWWI Research Papers 136, Hamburg Institute of International Economics (HWWI).
  3. Lisa Grazzini & Alessandro Petretto, 2013. "Federalism with Bicameralism," Working Papers - Economics wp2013_01.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
  4. Giovanni Facchini & Tommaso Frattini & Cora Signorotto, 2013. "Mind What Your Voters Read: Media Exposure and International Economic Policy Making," Development Working Papers 358, Centro Studi Luca d\'Agliano, University of Milano.
  5. Conconi, Paola & Facchini, Giovanni & Zanardi, Maurizio, 2011. "Policymakers' Horizon and Trade Reforms," CEPR Discussion Papers 8561, C.E.P.R. Discussion Papers.
  6. Fugazza, Marco & Robert-Nicoud, Frédéric, 2010. "The 'Emulator Effect' of the Uruguay Round on US Regionalism," CEPR Discussion Papers 7703, C.E.P.R. Discussion Papers.
  7. Barbara Dluhosch & Nikolai Ziegler, 2011. "The paradox of weakness in the politics of trade integration," Constitutional Political Economy, Springer, vol. 22(4), pages 325-354, December.
  8. Lake, James & Millimet, Daniel L., 2014. "An Empirical Analysis of Trade-Related Redistribution and the Political Viability of Free Trade," IZA Discussion Papers 8086, Institute for the Study of Labor (IZA).

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