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Fast Track Authority and International Trade Negotiations

Author

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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.

Suggested Citation

  • Paola Conconi & Giovanni Facchini & Maurizio Zanardi, 2008. "Fast Track Authority and International Trade Negotiations," Development Working Papers 246, Centro Studi Luca d'Agliano, University of Milano.
  • Handle: RePEc:csl:devewp:246
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    File URL: http://www.dagliano.unimi.it/media/WP2008_246.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. 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.
    2. 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.
    3. 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).
    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. Lake, James, 2015. "Revisiting the link between PAC contributions and lobbying expenditures," European Journal of Political Economy, Elsevier, vol. 37(C), pages 86-101.
    6. Yi Che & Yi Lu & Justin R. Pierce & Peter K. Schott & Zhigang Tao, 2016. "Does Trade Liberalization with China Influence U.S. Elections?," Finance and Economics Discussion Series 2016-039, Board of Governors of the Federal Reserve System (U.S.).
    7. 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.
    8. repec:eee:jjieco:v:45:y:2017:i:c:p:51-66 is not listed on IDEAS
    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. Conconi, Paola & Facchini, Giovanni & Steinhardt, Max & Zanardi, Maurizio, 2012. "The political economy of trade and migration: Evidence from the U.S. Congress," CEPR Discussion Papers 9270, C.E.P.R. Discussion Papers.
    11. Paola Conconi & Giovanni Facchini & Maurizio Zanardi, 2011. "Policymakers’ Horizon and Trade Reforms," Development Working Papers 311, Centro Studi Luca d'Agliano, University of Milano.
    12. 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.
    13. Lisa Grazzini & Alessandro Petretto, 2015. "Federalism with Bicameralism," German Economic Review, Verein für Socialpolitik, vol. 16(2), pages 138-160, May.
    14. Yoon Joon & Lee Woong, 2018. "What Determined 2015 TPA Voting Pattern?: The Role of Trade Negotiating Objectives," Working Papers id:12417, eSocialSciences.
    15. Vincent Anesi & Giovanni Facchini, "undated". "Coercive Trade Policy," Development Working Papers 376, Centro Studi Luca d'Agliano, University of Milano.
    16. 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.
    17. 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.
    18. Levent Celik & Bilgehan Karabay & John McLaren, 2018. "Fast-Track Authority: A Hold-Up Interpretation," NBER Working Papers 24427, National Bureau of Economic Research, Inc.
    19. 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.
    20. repec:smu:ecowpa:1405 is not listed on IDEAS
    21. Maggi, Giovanni, 2014. "International Trade Agreements," Handbook of International Economics, Elsevier.
    22. 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.
    23. Dluhosch Barbara, 2010. "The Second-Mover Advantage in International Trade Negotiations," Global Economy Journal, De Gruyter, vol. 10(1), pages 1-37, February.
    24. Aquilante, Tommaso, 2015. "Bureaucrats or Politicians? Political Parties and Antidumping in the US," MPRA Paper 70359, University Library of Munich, Germany.
    25. Paola Conconi, 2009. "The EU Common Commercial Policy and Global/Regional Trade Regulation," ULB Institutional Repository 2013/13344, ULB -- Universite Libre de Bruxelles.

    More about this item

    Keywords

    Fast Track Authority; Trade Negotiations; Strategic Delegation;

    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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