Free Trade Under Fire Third

FREE TRADE

UNDER FIRE

Princeton University Press

Princeton and Oxford

FREE TRADE

UNDER FIRE

THIRD

EDITION

DOUGLAS

A.

IRWIN

Copyright © 2009 by Princeton University Press

Published by Princeton University Press, 41 William Street, Princeton, New Jersey 08540

In the United Kingdom: Princeton University Press, 6 Oxford Street, Woodstock,

Oxfordshire OX20 1TW

All Rights Reserved

Library of Congress Cataloging-in-Publication Data

Irwin, Douglas A., 1962Free trade under fire / Douglas A. Irwin.—3rd ed.

p.

cm.

Includes bibliographical references and index.

ISBN 978-0-691-14315-6 (pbk. : alk. paper) 1. Free trade—United States.

States—Commercial policy.

3. Globalization.

I. Title.

HF1756.I68 2009

382 .710973—dc22

2009002285

British Library Cataloging-in-Publication Data is available

This book has been composed in

Printed on acid-free paper. ∞

press.princeton.edu

Printed in the United States of America

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FOR JAGDISH BHAGWATI, CHAMPION OF THE

M U LT I L AT E R A L T R A D I N G S Y S T E M

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Contents

List of Figures

List of Tables

Preface

ix

xi

xiii

Introduction

1

1

The United States in a New Global Economy?

2

The Case for Free Trade: Old Theories, New Evidence

3

Protectionism: Economic Costs, Political Benefits? 70

4

Trade, Jobs, and Income Distribution

5

Relief from Foreign Competition: Antidumping

and the Escape Clause

8

105

146

6

Developing Countries and Open Markets 176

7

The World Trading System: The WTO, Trade Disputes,

and Regional Agreements 219

28

viii

Contents

Conclusion 270

References

Index

307

279

Figures

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1.3

1.4

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1.6

2.1

2.2

2.3

3.1

3.2

4.1

4.2

4.3

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4.9

5.1

U.S. Merchandise Exports and Imports as a...