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Regional Trade Agreements and Cross-Border Lobbying: Empirical Evidence from the Canada-US Free Trade Agreement Negotiations

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  • Andrey Stoyanov

    (York University, Department of Economics, Faculty of Liberal Arts and Professional Studies)

Abstract

This paper documents participation of special interest groups in negotiations of the Canada-US Free Trade Agreement. Using data on the tari§ reduction schedules mandated by the agreement, it shows that industries represented by strong lobby groups were faced with more favorable tari§ reduction paths in both countries: phase-out periods were longer at home and shorter in the partner country. This result provides evidence on the involvement of industry lobbying in negotiation of regional trade agreements and suggests that countries negotiating trade agreements are responsive to the interests of lobbying groups from across the border. Both results provide important implications for the political economy theory of trade agreements.

Suggested Citation

  • Andrey Stoyanov, 2015. "Regional Trade Agreements and Cross-Border Lobbying: Empirical Evidence from the Canada-US Free Trade Agreement Negotiations," Working Papers 2015_4, York University, Department of Economics.
  • Handle: RePEc:yca:wpaper:2015_4
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    More about this item

    Keywords

    Free Trade Agreements; Lobbying; Trade policy; Canada-US FTA;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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