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RESEARCH ROUNDUP
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September 19, 2020
New Mercatus Research
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Time for US Unilateral Trade Liberalization
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Daniel Griswold and Donald J. Boudreaux
While the American economy is still reeling from the effects of the coronavirus pandemic, US protectionist trade policies are compounding the problems facing businesses. In this new research paper, Daniel Griswold and Donald J. Boudreaux call for a congressional commitment to unilateral trade liberalization – a “trade agreement with ourselves.” Though such an agreement could be politically difficult, the benefits of unilateral trade liberalization would be broadly shared, boosting take-home pay and worker productivity for the majority of American firms. Among the minority of businesses that may be hurt by liberal trade policies, the net economic gains could make more resources available for income support, job retraining, and other programs to help displaced workers find more sustainable employment.
It’s time for the United States to join emerging economies such as India, China, and Chile, as well as high-income nations such as Australia, New Zealand, and the United Kingdom, in committing to unilateral trade liberalization. Such a policy will increase domestic wealth, prevent resources from being wasted on government rent-seeking, and improve American credibility on the international stage.
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