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Fast Track Authority and International Trade Negotiations

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  • Conconi, Paola
  • Facchini, Giovanni
  • Zanardi, Maurizio

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.

Suggested Citation

  • Conconi, Paola & Facchini, Giovanni & Zanardi, Maurizio, 2008. "Fast Track Authority and International Trade Negotiations," CEPR Discussion Papers 6790, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:6790
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    Cited by:

    1. Facchini, Giovanni & Silva, Peri & Willmann, Gerald, 2013. "The customs union issue: Why do we observe so few of them?," Journal of International Economics, Elsevier, vol. 90(1), pages 136-147.
    2. Marco Fugazza & Frédéric Robert-Nicoud, 2014. "The “Emulator Effect” of the Uruguay Round on US Regionalism," Review of International Economics, Wiley Blackwell, vol. 22(5), pages 1049-1078, November.
    3. Vincent Anesi & Giovanni Facchini, "undated". "Coercive Trade Policy," Development Working Papers 376, Centro Studi Luca d'Agliano, University of Milano.
    4. Conconi, Paola & DeRemer, David R. & Kirchsteiger, Georg & Trimarchi, Lorenzo & Zanardi, Maurizio, 2017. "Suspiciously timed trade disputes," Journal of International Economics, Elsevier, vol. 105(C), pages 57-76.
    5. 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).
    6. Conconi, Paola & Facchini, Giovanni & Zanardi, Maurizio, 2014. "Policymakers' horizon and trade reforms: The protectionist effect of elections," Journal of International Economics, Elsevier, vol. 94(1), pages 102-118.
    7. 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.
    8. 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.
    9. Lake, James & Millimet, Daniel L., 2016. "An empirical analysis of trade-related redistribution and the political viability of free trade," Journal of International Economics, Elsevier, vol. 99(C), pages 156-178.
    10. Lisa Grazzini & Alessandro Petretto, 2015. "Federalism with Bicameralism," German Economic Review, Verein für Socialpolitik, vol. 16(2), pages 138-160, May.
    11. Marco Fugazza & Frédéric Robert-Nicoud, 2012. "The ‘Emulator Effect’ Of The Uruguay Round On United States Regionalism," UNCTAD Blue Series Papers 51, United Nations Conference on Trade and Development.
    12. Paola Conconi, 2009. "The EU Common Commercial Policy and Global/Regional Trade Regulation," ULB Institutional Repository 2013/13344, ULB -- Universite Libre de Bruxelles.
    13. Yi Che & Yi Lu & Justin R. Pierce & Peter K. Schott & Zhigang Tao, 2016. "Does Trade Liberalization with China Influence U.S. Elections?," NBER Working Papers 22178, National Bureau of Economic Research, Inc.
    14. Yoon Joon & Lee Woong, 2018. "What Determined 2015 TPA Voting Pattern?: The Role of Trade Negotiating Objectives," Working Papers id:12417, eSocialSciences.
    15. Maggi, Giovanni, 2014. "International Trade Agreements," Handbook of International Economics, Elsevier.
    16. Dluhosch Barbara, 2010. "The Second-Mover Advantage in International Trade Negotiations," Global Economy Journal, De Gruyter, vol. 10(1), pages 1-37, February.
    17. Casarico, Alessandra & Facchini, Giovanni & Frattini, Tommaso, 2016. "What Drives the Legalization of Immigrants? Evidence from IRCA," IZA Discussion Papers 9666, Institute for the Study of Labor (IZA).
    18. Lake, James, 2015. "Revisiting the link between PAC contributions and lobbying expenditures," European Journal of Political Economy, Elsevier, vol. 37(C), pages 86-101.
    19. repec:eee:jjieco:v:45:y:2017:i:c:p:51-66 is not listed on IDEAS
    20. Paola Conconi & Giovanni Facchini & Maurizio Zanardi, 2011. "Policymakers’ Horizon and Trade Reforms," Development Working Papers 311, Centro Studi Luca d'Agliano, University of Milano.
    21. Daniel Cardona & Clara Ponsatí, 2015. "Representing a democratic constituency in negotiations: delegation versus ratification," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 45(2), pages 399-414, September.
    22. repec:smu:ecowpa:1405 is not listed on IDEAS
    23. Paola Conconi & Giovanni Facchini & Max F. Steinhardt & Maurizio Zanardi, 2012. "The Political Economy of Trade and Migration: Evidence from the US Congress: CEPR Discussion Paper 9270," Working Papers ECARES ECARES 2012-49, ULB -- Universite Libre de Bruxelles.
    24. Aquilante, Tommaso, 2015. "Bureaucrats or Politicians? Political Parties and Antidumping in the US," MPRA Paper 70359, University Library of Munich, Germany.

    More about this item

    Keywords

    Fast Track Authority; Strategic Delegation; Trade Negotiations;

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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