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eJournal USAAn Electronic Journal of the U.S. Department of State, January 2007

Benefits of Trade
Costs of Protectionism

PDF version of 'Benefits of Trade Costs of Protectionism'
Cover Photo: © Mark Gibson/Index Stock/Corbis

Removing trade barriers through World Trade Organization and other negotiations promises to lift millions of people around the world out of poverty. Maintaining protectionist practices hurts millions, especially in the developing world, by preventing sustained economic expansion. While developed countries need to drop their own protectionist practices, developing countries stand to gain the most benefits by removing their protectionist barriers to imports from each other. Protectionism bolsters the politically designated few while harming the many; the problem and the solution are political. This issue of eJournal USA has articles from authors inside and outside the U.S. government describing the benefits of trade and the costs of protectionism.

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Benefits of Trade Costs of Protectionism

CONTENTS

Introduction
John Veroneau, Deputy U.S. Trade Representative

Why Liberalize Trade?
Christina Sevilla, Deputy Assistant U.S. Trade Representative
Opening trade fuels growth and raises millions of people out of poverty.

Protectionism and Politics
Bruce Stokes, International Economics Columnist, National Journal
Responding to political pressure, governments have protected their producers from imports. As the problem of protectionism is political, so must the solution be.

Developing Countries Need to Open Markets to Each Other
David Dollar, Country Director for China and Mongolia, World Bank
Fully half of the benefits to developing countries from stalled multilateral trade negotiations would come from getting better access to each other's markets.

Calming Workers' Fears About Trade
David H. Feldman, Professor of Economics, College of William and Mary
Most changes in the workplace leading to job displacement can be attributed to advances in technology, but it is increasing imports that attract more blame.

Learning the Correct Lesson About Protectionism
Gary Hufbauer, Senior Fellow, and Costantino Pischedda, Research Assistant, Peterson Institute for International Economics
War-ravaged East Asian economies briefly used protectionist policies to revive their economies, but only when they opened their markets to imports did they realize enduring rapid expansion.
 
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A Clear Model for Reform
Jonathan Kimball, Director for Central and Southeastern Europe, U.S. Department of Commerce
The difference in economic development between the many former Soviet bloc countries that have opened their markets and the few that have not done so is sharp and revealing.

How the WTO Fights Protectionism
Carla A. Hills, Chairman and Chief Executive Officer, Hills & Company
The WTO is the world's greatest bulwark against protection.

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Benefits of Trade Costs of Protectionism

eJournal USA

eJournal USA:
Economic Perspectives

Volume 12, Number 1, January 2007


The Bureau of International Information Programs of the U.S. Department of State publishes five electronic journals under the eJournal USA logo—Economic Perspectives, Global Issues, Issues of Democracy, Society & Values, and Foreign Policy Agenda—that examine major issues facing the United States and the international community as well as U.S. society, values, thought, and institutions.

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