THE UNIVERSITY OF MICHIGAN
Gerald R. Ford School of Public Policy
and
Department of Economics

PubPol/Econ 541
INTERNATIONAL TRADE POLICY

SYLLABUS
Fall 2024, Alan Deardorff
MW 8:30 AM Zoom

Contacts Class structure Text Podcasts Questions Requirements Schedule Policies Readings
Classes: 8/26 8/28 9/4 9/9 9/11 9/16 9/18 9/23 9/25 9/30
10/2 10/7 10/9 10/16 10/21 10/23 10/28 10/30
11/4 11/6 11/11 11/13 11/18 11/20 11/25 12/2 12/4

CONTACTS

PURPOSE: The aim of this course is to teach you a lot about the economics -- and a little about the institutions -- of international trade and trade policy. The course is companion to SPP 542, International Finance Policy, which deals with international macroeconomic topics such as the balance of trade and balance of payments, determination of exchange rates, and international macroeconomic policies. Each course also includes some bare essentials of the other course so that if you take only one of them, you won't be lost in the world economy.

The course is mainly about trade policy. You will learn what trade policies are, how they are used by the United States and other countries, and how their use is restricted by international agreements. More importantly you will learn how to use economic modeling to understand the effects of trade policies and to quantify those effects. Along the way you will also learn about the institutions of the world economy, especially those that have to do with trade. And you will learn a little bit about the economic theories of why nations trade, why economists argue that nations gain from trade, and why there are also losers from trade.

Prerequisite: PubPol/Econ 555 or equivalent course in intermediate microeconomics
Organization: The course meets twice a week, Mondays and Wednesdays, 8:30-9:50 AM, online via Zoom.
Room reserved: While the class will meet only online, some of you may need a quiet place to access it if you need to be on campus for other courses. The registrar has reserved 1220 Weill Hall for your use during the MW 8:30-9:50 class time, and you are welcome to use that space to access the course with your own laptop.

CLASS STRUCTURE

TEXTs

PODCASTS

QUESTIONS ON READINGS

REQUIREMENTS

Problem Sets   0%
Papers 45% (15% for each of three papers)
Quizzes 40% (4% for each of your top ten)
Class participation 15%
SCHEDULE

Quizzes: Due every Friday (except 11/29) 11:59 PM (Accepted late to Sat 11:59 PM with 1 point penalty)
Paper #1: Wednesday, October 2 8:30 AM
Paper #2: Wednesday, November 6 8:30 AM
Paper #3: Wednesday, December 11 8:30 AM

WRITING ASSISTANCE

FORD SCHOOL POLICIES AND EXPECTATIONS


COURSE OUTLINE AND READING LIST

NOTES: 1. Click title for citation; click Online for item if it is on the web; click Canvas for the items not on the web.
2. Copies of all readings other than from the KOM textbook are also available in Canvas.
3. All readings are required unless marked "Optional to Read," but a few required readings are marked with a tilde, ~. These represent views that are not necessarily justified by economic analysis. They often contain useful factual information, but I disagree with some of their interpretations, and they are here so that you will be aware of a range of views.

0. Introduction to the Course (Class 0: Aug 26)
No readings for today. For all subsequent classes, you should read everything assigned before the class meets.
I've listed the numbers of pages for each reading and for each topic, so plan accordingly.
Today: I will introduce myself and ask each of you to introduce yourselves, so plan to turn on your microphone and camera. Tell the class:
  • Who you are,
  • What you want to be called,
  • What program and year you are in,
  • Where you are from, and
  • Any particular questions or answers you have about international economics.
Following that I will present some background information about the international economy and trade.
      Optional to View:
           Kudlow, "Don't blame Trump' for trade fights" YouTube (2:14)
           Oliver, "Trade" YouTube (21:13)
I. Overview of the International Economy
A.1. The State of Play in International Trade and Trade Policy I: Trade Wars (Class 1: Aug 28) [53 pp + Opt 37 pp] Questions
Bown & Kolb, "Trade War Timeline" | Online (PDF). [27 pp]
Steel & Aluminum:
Reuters, "Biden extends EU steel, aluminum tariff exemption for 2 years" | Canvas. [2 pp]
Rampell, "The terrible lesson Biden learned from Trump on trade" | Canvas. [2 pp]
      Optional to Read:
            Wall Street Journal Editorial Board, "Call Them the Biden-Trump Tariff's Now" | Canvas.[2 pp]
      Optional to Hear:
            Trade Talks #159, "How Biden and Europe settled Trump's steel and aluminum tariffs" 11/7/21 | Podcast [22:44 minutes]
            Trade Talks #175, "The dreaded WTO ruling on Trump’s national security tariffs" 1/22/23 | Podcast [54:36 minutes]
China Tariffs:
Swanson, "The Contentious U.S.-China Relationship, by the Numbers" | Canvas.[2 pp]
White House, "FACT SHEET: President Biden Takes Action to Protect American Workers and Businesses from China’s Unfair Trade Practices" | Online. [7 pp]
~Foroohar, "Not all American tariffs are created equal" | Canvas. [3 pp]
Bounds et al., "EU to hit Chinese electric cars with tariffs of up to 48%" | Canvas. [4 pp]
Williams, "US targets Chinese steel exports with tariffs on shipments via Mexico" | Canvas. [2 pp]
      Optional to Read:
            Manak et al., "The Cost of Trump’s Trade War with China Is Still Adding Up" | Online [7 pp]
            Bown and Wang, "Five years into the trade war, China continues its slow decoupling from US exports" | Online (PDF). [17 pp]
            Warner, "How Companies Dodge Tariffs" | Canvas. [2 pp]
      Optional to Hear:
            Trade Talks #118, "Ins and Outs of the US-China Phase-One Trade Deal" 1/18/20 | Podcast [44:58 minutes]
            Trade Talks #181, "US-China trade war fallout: This is what decoupling looks like" 3/21/23 | Podcast [45:43 minutes]
Semiconductors:
Mozur and Liu, "With Ban on Micron, China Escalates Microchip Clash With U.S." | Canvas.[2 pp]
Sohn et al., "China’s Export Curb on Chip-Making Metals Prompts Countries to Explore Supply-Chain Diversification" | Canvas.[4 pp]
      Optional to Read:
            Hayashi and McKinnon, "U.S. Looks to Restrict China’s Access to Cloud Computing to Protect Advanced Technology" | Canvas.[4 pp]
            Economist, "Castles made of silicon: Should the world fear China's chipmaking binge?" | Canvas. [5 pp]
      Optional to View:
            Miller, Chris, "Chip War: The Fight for the World's Most Critical Technology" 2/23/23 | Video [84 minutes]
      Optional to Hear:
            Trade Talks #170, "National security, semiconductors, and the US move to cut off China" 11/2/22 | Podcast [59:33 minutes]
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Quiz 0, Due Fri, Aug 30 11:59 PM
Practice Quiz, not for credit
***********************************
A.2. The State of Play in International Trade and Trade Policy II: Other (Class 2: Sep 4) [42 pp + Opt 49 pp] Questions
      Optional to Read:
            KOM: [21 pp]
                  Ch. 1, "Introduction"
                  Ch. 2, "World Trade: An Overview"
BREXIT:
Kirkegaard, "The Brexit agreement: An economic guide for the perplexed" | Online. [4 pp]
Colchester and Luhnow, "As Britain Gears Up for an Election, No One Is Talking About Brexit" | Canvas. [5 pp]
      Optional to Read:
            Economist, "The story of a divorce: How Brexit happened" | Canvas.[8 pp]
            Economist, "Brexit and Northern Ireland: Explaining what is in the Windsor framework" | Canvas.[2 pp]
      Optional to Hear:
            Trade Talks #154, "Global Britain: How's that going then?" 6/17/21 | Podcast [27:55 minutes]
CHINA TRADE ACTIONS:
White, "China bans export of rare earth processing technologies" | Canvas. [2 pp]
Winning, "China to Lift Tariffs on Australian Wine, as Frosty Relations Thaw" | Canvas. [3 pp]
Huang, "China to Impose Export Controls on Aviation Equipment, Technology" | Canvas. [1 pp]
RUSSIA SANCTIONS:
Bown, "Russia's war on Ukraine: A sanctions timeline" | Online. [4 pp]
Sanger et al., "U.S. Expands Sanctions on Russia as G7 Leaders Gather" | Canvas. [3 pp]
      Optional to Read:
            Funakoshi et al., "Tracking sanctions against Russia" ("Sanctions by Countries" only) | Online. [11 pp]
OTHER DISPUTES, ACTIONS, AND EVENTS:
EU Carbon Tariff:
Hancock and Dempsey, "Aluminium companies complain about EU carbon border tax loophole" | Canvas.[3 pp]
Mooney, "US examines carbon pricing on imports, climate envoy says" | Canvas. [3 pp]
      Optional to Read:
            Financial Times Editorial Board, "The EU’s pioneering carbon border tax" | Canvas.[3 pp]
Shipping Disruptions:
Financial Times Editorial Board, "Global trade shudders over blockages in the Suez and Panama canals" | Canvas. [3 pp]
      Optional to Read:
            Lerman et al., "See how the Key Bridge collapse will disrupt the supply of cars, coal and tofu" | Canvas. [4 pp]
Forced labor import ban:
Swanson, "U.S. Bans Imports From 3 Chinese Companies Over Ties to Forced Labor" | Canvas. [3 pp]
EU Deforestation import ban:
Economist, "The forest for the trees: How EU do-goodery risks harming Africa’s small farmers" | Canvas. [2 pp]
Vietnam market-economy status:
Lakshmi, "US rejects Vietnam’s bid for ‘market economy’ status in blow to trade ties" | Canvas. [3 pp]
EU-MERCOSUR FTA:
Pooler et al., "EU inches closer to trade deal with South America" | Canvas. [3 pp]
***********************************
Quiz 1, Due Fri, Sep 6 11:59 PM
State of Play
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B.Tariffs and Quotas (Classes 3, 4: Sep 9, 11) [37 pp + Opt 16 pp] Questions
KOM: [12 pp]
           "Basic Tariff Analysis"
           "Costs and Benefits of a Tariff"
      12th Ed.: Ch. 9, pp. 216-227
      11th Ed.: Ch. 9, pp. 215-226
      10th Ed. (trade only): Ch. 9, pp. 206-217, 220-224
Deardorff, "Nontariff Barriers and Domestic Regulation", pp. 1-12 | Online (PDF) [12 pp]
Lahart, "The Imperfect Science of How Much Tariffs Will Hurt". | Canvas.[2 pp]
Martin, "US Importers Bore Cost of Trump’s China Goods Tariffs, ITC Says". | Canvas.[3 pp]
Economist, "The Tijuana two-step: How Chinese goods dodge American tariffs". | Canvas. [4 pp]
Wolf, "Tariffs are bad policy, but good politics". | Canvas. [4 pp]
      Optional to Read:
            Deardorff, "Analysis of Tariffs and Quotas" | Canvas.[16 pp]
      Optional to View:
            Touillon-Ricci, "A 4,000-year old tale of trade and contraband" (7:54) (Tariffs are not new!)
      Optional to Hear:
            Trade Talks #122, "Tariffs, Protests and Wine" 2/23/20 | Podcast [29:58 minutes]
            Trade Talks #130, "So you want to design a tariff schedule..." 5/31/20 | Podcast [33:14 minutes]
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Quiz 2, Due Fri, Sep 13 11:59 PM
Tariff Analysis
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C. Exchange Rates (Class 5: Sep 16) [27 pp] Questions
KOM: [11 pp]
           "Exchange Rates and International Transactions"
           "The Foreign Exchange Market"
      12th Ed. Ch 14, pp. 356-364
      11th Ed. Ch 14, pp. 350-360 Canvas (for those who have an older trade-only text)
Economist, "The Big Mac index: What the Big Mac index says about the dollar and the dong" | Canvas.[4 pp]
Economist, "Burgernomics: The Big Mac index: where to buy a cheap hamburger" | Canvas.[4 pp]
Economist, "What comes after Bretton Woods II?" | Canvas.[3 pp]
McDougall, "US dollar to maintain dominance over next decade, say central banks" | Canvas.[4 pp]
Eichengreen , "The fate of dollar rests on the US election" | Canvas. [3 pp]
      Optional to Hear:
            Trade Talks #95, "Is China a Currency Manipulator?" 8/9/19 | Podcast [22:33 minutes]
            Trade Talks #104, "How to Hit Currency Manipulators and Fight the Strong Dollar" 12/19/19 | Podcast [29:01 minutes]
D. International Transactions and the Trade Balance (Class 6: Sep 18) [47 pp + Opt 14 pp] Questions
KOM: [25 pp]
           Ch 13, "National Income Accounting and the Balance of Payments"
      Canvas (for those who have an older trade-only text)
Berg, "A look at the U.S. International Transactions, First Quarter 2024" | Online [10 pp]
Obstfeld, "Targeting specific trade deficits is a game of whack-a-mole" | Canvas.[2 pp]
Krugman, "Of Dictators and Trade Surpluses" | Canvas. [2 pp]
~Pettis, "No, trade surpluses aren’t caused by comparative advantage" | Canvas. [4 pp]
Bradsher, "China Reaches Record Trade Surplus, Raising Alarm Abroad" | Canvas. [4 pp]
      Optional to Read:
            ~Scott & Mokhiber, "Growing China trade deficit cost 3.7 million American jobs" pp. 1-9 only | Online (PDF) [9 pp]
            ~Buffett, "America's Growing Trade Deficit Is Selling the Nation Out From Under Us" | Online (PDF) [5 pp]
      Optional to Hear:
            Trade Talks #98, "What's Wrong with Germany's Trade Surplus" 8/28/19 | Podcast [31:46 minutes]
***********************************
Quiz 3, Due Fri, Sep 20 11:59 PM
Exchange Rates and BOP
***********************************
E. Policies and Institutions: International (Classes 7, 8: Sep 23-25) [59 pp + Opt 43 pp] Questions
KOM: [10 pp]
         "International Negotiations and Trade Policy"
         "BOX: Settling a Dispute -- And Creating One"
         "CASE STUDY: Testing the WTO's Metal"
     12th Ed.: Ch. 10, pp. 264-272
     11th Ed.: Ch. 10, pp. 260-269
     10th Ed. (trade only): Ch. 10, pp. 252-262
Jackson, Ch. 1 pp. 1-11 Canvas. [11 pp]
Jackson, Ch. 2 pp. 49-58 Canvas. [10 pp]
Rodrik, "What Do Trade Agreements Really Do?" | Canvas. [18 pp]
Kugler and Morgan, "The MPIA: A Viable Temporary Alternative)" (omit Colombia-Frozen Fries)| Online. [4 pp]
Denamiel et al., "Insight into the 13th WTO Ministerial Conference" Online. [6 pp]
      Optional to Read:
            Jackson, Ch. 2 pp. 31-49, 58-78 Canvas. [31 pp]
            Schlesinger, "How China Swallowed the WTO" | Canvas. [12 pp]
      Optional to Hear:
            Trade Talks #60, "America May Be Doing Away with WTO Dispute Settlement" 10/28/18 | Podcast [31:50 minutes]
            Trade Talks #180, "The WTO is in trouble. Econ 101 to the rescue?" 3/212/23 | Podcast [1:10:41 minutes]
***********************************
Quiz 4, Due Fri, Seo 27 11:59 PM
International Institutions
***********************************
F. Policies and Institutions: National, United States (Class 9: Sep 30) [40 pp + Opt 5 pp] Questions
Jackson, Ch. 3, pp. 79-100 Canvas. [21 pp]
Verrill, "An Introduction To Trade Remedies Available Under U.S. Law" | Canvas. [3 pp]
USTR, "USTR Releases President Biden’s 2024 Trade Policy Agenda and 2023 Annual Report" | Online. [2 pp]
Economist, "Trade mission: Taking stock of America’s flagship trade programme for Africa," | Canvas. [4 p]
Fefer et al., "Section 232 Investigations: Overview and Issues for Congress," | Canvas. [2 p]
Tai, "Trade must transform its role in the social contract," | Canvas. [3 p]
Tankersley, "Biden’s Trade Moves Raise Tensions Abroad but Draw Cheers in Swing States," | Canvas. [5 p]
      Optional to Read:
            Rampell, "What women’s underwear tells us about our trade system" | Canvas. [5 pp]
G. Policies and Institutions: National, Other (Class 10: Oct 2) [44 pp] Questions
European Union:
Jackson, Ch. 3, pp. 100-104 Canvas. [5 pp]
EC, "The European Union in Brief" | Canvas. [5 pp]
EC - Trade, "Making Trade Policy" | Online [2 pp]
Matthijs and Parsons, "Single-Market Power: How Europe Surpassed America in the Quest for Economic Integration." | Canvas. [6 pp]
Economist, "The Trade War Within" | Canvas. [3 pp]
Bounds, "EU seeks protected status for goods such as Donegal tweed and Limoges porcelain" | Canvas. [2 pp]
      Optional to Hear:
            Trade Talks #148, "The EU's new trade policy, with Sabine Weyand of DG Trade" 1/17/21 | Podcast [41:31 minutes]
Japan:
Jackson, Ch. 3, pp. 104-105 Canvas. [1 p]
METI, "Trade Control" | Online [1 p]
WTO, "Trade Policy Review: Japan" | Online-PDF [5 pp]
China:
MOFCOM, "Mission" of the Ministry of Commerce, People's Republic of China | Online. [4 pp]
WTO, "Trade Policy Review: China" | Online-PDF [6 pp]
Wei, "China Spends Far More Than Others to Help Favored Industries, Report Finds" | Canvas. [4 pp]
 

**************************************************

Paper 1, Due Wednesday, Oct 2 8:30 AM

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***********************************
Quiz 5, Due Fri, Oct 4 11:59 PM
National Institutions
***********************************
II.Trade Barriers
A.Non-tariff Barriers (Class 11: Oct 7) [46 pp] Questions
KOM: [10 pp]
         "Import Quotas: Theory"
         "Voluntary Export Restraints"
         "Local Content Requirements"
         "Other Trade Policy Instruments"
     12th Ed.: Ch. 9, pp. 233-241
     11th Ed.: Ch. 9, pp. 229-238
     10th Ed. (trade only): Ch. 9, pp. 217-220, 224-227, 232-235
Jackson, Ch. 5, pp. 153-156 Canvas. [3 pp]
Deardorff, "Nontariff Barriers and Domestic Regulation", pp. 12-16 | Canvas. [5 pp]
Feenstra, "How Costly Is Protectionism?" | Canvas. [20 pp]
Beattie, "Mind your TRQs: a Brexit lesson in global trade" | Canvas. [4 pp]
Economist, "Buying local is more expensive than it looks" | Canvas. [4 pp]
      Optional to Hear:
            Trade Talks #49, "Are Trump's Steel Quotas Worse than His Steel Tariffs?" 8/1/18 | Podcast [20:26 minutes]
B.Export Policies (Class 12: Oct 9) [35 pp + Opt 22 pp for Intermission] Questions
Laborde et al., "A Global Assessment of the Economic Effects of Export Taxes" | Canvas. [17 pp after omissions]
Beckman et al., "The impacts of export taxes on agricultural trade" | Online [4 pp]
Godek, "Why China’s Export Controls on Germanium and Gallium May Not Be Effective" | Online [6 pp]
Beattie, "Why export controls are failing to cripple their targets" | Canvas [4 pp]
Savage and Jilani, "Pakistan rice exports hit record following Indian sales ban" | Canvas [4 pp]
      Optional to Hear:
            Trade Talks #146, "Semiconductors and US export bans -- from Huawei to SMIC" 12/20/20 | Podcast [32:35 minutes]
***********************************
Quiz 6, Due Fri, Oct 11 11:59 PM
NTBs and Export Taxes
***********************************

FALL STUDY BREAK, Oct 14-15

*** INTERMISSION, Monday Oct 14 ***
We will not hold a formal class, due to Fall Study Break, and there are no required assignments.
But I will be available during class time for discussion with those who may want to attend with questions or comments. The optional readings below may be of interest to some. Questions
      Optional to Read: Questions
            Scott, "It's time to end the male monopoly in international trade" | Canvas. [5 pp]
            Economist, "Making trade greener: When environmental protection turns into trade protection " | Canvas. [6 pp]
            Telling, "China urges developing countries to oppose ‘unrealistic’ shipping levy" | Canvas. [3 pp]
            Economist, "The urge to protect: How trade restrictions are being used as a tool to protect human rights" | Canvas. [6 pp]
            Swanson, "Foreign Trade Competition Has Hurt Black and Disadvantaged Workers Most, Report Says" | Canvas. [2 pp]
      Optional to Hear:
            Trade Talks #124, "Is Trade Bad for Women?" 3/5/20 | Podcast [21:07 minutes]
C.Multi-Market Analysis (Class 13: Oct 16) [13 pp] Questions
Deardorff, "Trade Policy with Interacting Markets" | Canvas. [13 pp]
D.Why Countries Restrict Trade (Class 14: Oct 21) [46 pp + Opt 19 pp] Questions
KOM: [14 pp]
         "The Case for Free Trade"
         "National Welfare Arguments against Free Trade"
         "Income Distribution and Trade Policy"
         "BOX: Politicians for Sale: Evidence from the 1990s"
     12th Ed.: Ch. 10, pp. 251-262
     11th Ed.: Ch. 10, pp. 246-259
     10th Ed. (trade only): Ch. 10, pp. 236-252
Baldwin and Magee, "Is Trade Policy for Sale?" | Online-Springer (PDF) [22 pp]
Magee, "Why Are Trade Barriers So Low?" | Online-Wiley [6 pp]
Krugman, "Wonking Out: Two Cheers for Carbon Tariffs" | Canvas. [3 pp]
Ponnuru, "The politics of trade favor Trump in 2024" | Canvas. [3 pp]
      Optional to Read:
            Deardorff and Stern, "Introduction" | Canvas. [19 pp]
      Optional to Hear:
            Davidson, "U.S. Tariffs On Shoes" | Online [4 minutes]
            Trade Talks #121, "Can Infant Industry Protection Work? Evidence from Napoleon" 2/12/20 | Podcast [24:09 minutes]
            Trade Talks #156, "Tackling climate change with a carbon border adjustment mechanism" 7/25/21 | Podcast [43:45 minutes]
            Trade Talks #198, "Inside Washington’s lobbying industry" 12/3/23 | Podcast [33:02 minutes]
 

III. The Theory of International Specialization and Exchange
A. The Standard Trade Model (Classes 15, 16: Oct 23, Oct 28) [26 pp] Questions
KOM: [22 pp]
         "The Standard Trade Model"
     Ch. 6 (any edition)
Bernhofen & Brown, "Evidence from nineteenth century Japan" | Online [4 pp]
***********************************
Quiz 7, Due Fri, Oct 25 11:59 PM
Multi-Market and Why Restrict
***********************************
B. Behind the Standard Trade Model: Comp. Adv., Inc. Dist. (Class 17: Oct 30) [51 pp] Questions
KOM, on comparative advantage: [15 pp]
         "The Concept of Comparative Advantage"
         "A One-Factor Economy"
         "Trade in a One-Factor World"
         "BOX: The Case of Babe Ruth"
         "BOX: The Losses from Nontrade"
         "Misconceptions about Comparative Advantage"
         "BOX: Do Wages Reflect Productiity?
     12th Ed.: Ch. 3, pp. 25-40
     11th Ed.: Ch. 3, pp. 24-40
     10th Ed. (trade only): Ch. 3, pp. 24-40
KOM, on effects of trade: [10 pp]
         "Effects of International Trade between Two-Factor Economies"
         "CASE STUDY: North-South Trade and Income Inequality"
         "Factor-Price Equalization"
     12th Ed.: Ch. 5, pp. 97-102, 107-108
     11th Ed.: Ch. 5, pp. 97-102, 107-108
     10th Ed. (trade only): Ch. 5, pp. 94-98, 102-103
Deardorff, "Intro to Comparative Advantage" | Online (PDF) [7 pp]
Freeman, "Are Your Wages Set in Beijing?" | Online-JSTOR (PDF) [19 pp]
***********************************
Quiz 8, Due Fri, Nov 1 11:59 PM
Standard Model
***********************************
C. Scale Economies and Imperfect Competition (Class 18: Nov 4) [25 pp] Questions
KOM: [25 pp]
         "External Economies of Scale and the International Location of Production"
             (Except "Interregional Trade and Economic Geography")
         "The Theory of Imperfect Competition"
         "Monopolistic Competition and Trade"
     12th Ed.: Ch. 7, pp. 151-164; Ch. 8, pp. 170-180
     11th Ed.: Ch. 7, pp. 151-164; Ch. 8, pp. 170-180
     10th Ed. (trade only): Ch. 7, pp. 145-156; Ch. 8, pp. 164-174

 

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Paper 2, Due Wednesday, Nov 6 8:30 AM

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IV. Uses and Abuses of Trade Policy
A.Preferential Trading Arrangements (Class 19: Nov 6) [49 pp + Opt 12] Questions
KOM: [7 pp]
         "The End of Trade Agreements?"
         "BOX: Do Agricultural Subsidies Hurt the Third World?"
         "Preferential Trading Agreements"
         "BOX: Free Trade Area Versus Customs Union"
         "BOX: Brexit"
         "CASE STUDY: Trade Diversion in South America"
         "The Trans-Pacific Partnership"
     12th Ed.: Ch. 10, pp. 273-280
     11th Ed.: Ch. 10, pp. 269-276
     10th Ed. (trade only): Ch. 7, pp. 263-268
WTO, "Causes and Effects of PTAs" pp 94-109 | Online (PDF) [16 pp]
Posen, "The Errors of Conservatives Obscure the Case for Trade" | Canvas. [2 pp]
Deardorff and Sharma, "The Simple Analytics of Trade Creation and Diversion" | Online (PDF) [21 pp]
Russ, "Yes, US trade agreements led to economic gains, especially in services, new report says" | Canvas. [3 pp]
      Optional to Read:
            WTO, "Causes and Effects of PTAs" pp 109-120 | Online (PDF) [12 pp]
***********************************
Quiz 9, Due Fri, Nov 8 11:59 PM
Behind and Beyond the Standard Model
***********************************
B.FTAs and Other Trade Deals (Class 20: Nov 11) [47 pp + Opt 3 pp] Questions
Economist, "The art of the deal: Rumours of the trade deal’s death are greatly exaggerated" | Canvas [4 pp]
USMCA:
Kirby, "USMCA, Trump's New NAFTA Deal, Explained in 600 Words" | Online [2 pp]
Campbell, "Mexico trade deal threat poses risk to prices of US pick-ups, warns Chrysler boss" | Canvas [2 pp]
      Optional to Hear:
            Trade Talks #200, "Has the USMCA improved working conditions in Mexico?" 12/18/23 | Podcast [46:28 minutes]
RCEP:
Hayashi, "U.S. on Sidelines as China and Other Asia-Pacific Nations Launch Trade Pact" | Canvas. [3 pp]
CPTPP:
Edmond, "The United Kingdom is set to join the Trans-Pacific free trade pact. Here's what you need to know" | Online [4 pp]
EU and other:
Bounds, "EU seals Chile trade deal that will improve bloc’s access to key minerals" | Canvas. [3 pp]
Fildes and Bounds, "Australia and EU fail to reach free trade deal" | Canvas. [3 pp]
Bounds, "Brussels to proceed with LatAm trade deal despite French objections" | Canvas. [3 pp]
      Optional to Read:
            Bounds and Schipani, "EU agrees trade deal with Kenya as Brussels aims to boost Africa ties" | Canvas. [3 pp]
UK and other:
Fedor and Politi, "US calls for revived UK trade talks after Northern Ireland deal" | Canvas. [5 pp]
Edgington, "Trade deals: What has the UK done since Brexit?" | Online. [2 pp]
US and other:
Economist, "The great steeplechase: America is losing ground in Asian trade" | Canvas. [2 pp]
Beattie, "The US trade pledge to the Indo-Pacific is empty" | Canvas. [3 pp]
Areddy, "U.S., Taiwan Reach Trade Deal as Tensions With China Simmer" | Canvas. [3 pp]
      Optional to Hear:
            Trade Talks #166, "Biden’s new Indo-Pacific talks vs. TPP" 11/2/22 | Podcast [44:52 minutes]
Other:
Daniels and Leahy, "China deepens ties in Latin America with Ecuador free trade agreement" | Canvas. [4 pp]
Lawal, "Can Africa’s new free trade treaty boost business on the continent?," | Online. [7 pp]
C.Safeguards (Class 21: Nov 13) [39 pp] Questions
Jackson, Ch. 7 Canvas. [37 pp]
USITC, "Understanding Safeguard Investigations" undated | Online [2 pp]
      Optional to Hear:
            Trade Talks #20, "Tariff Time! Washing Machines and Dirty Trade Policy" 1/26/18 | Podcast [21:31 minutes]
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Quiz 10, Due Fri, Nov 15 11:59 PM
PTAs & FTAs
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D.Trade Adjustment Assistance (Class 22: Nov 18) [43 pp] Questions
Brainard et al., "Insuring America's Workers" | Online (PDF) [8 pp]
Rosen, "Strengthening Trade Adjustment Assistance" | Online [10 pp]
Lawrence, "A Numbers Argument for Renewing " | Canvas. [2 pp]
Beattie, "The flaws in trying to compensate globalisation's losers" | Canvas. [3 pp]
~James, "Maladjusted: The Misguided Policy of Trade Adjustment Assistance'" | Online [13 pp]
Collins, "Trade Adjustment Assistance for Workers: Background and Current Status" | Canvas. [6 pp]
Brown, "Trade Adjustment Assistance (TAA) Reauthorization Act of 2024" | Online. [1 p]
      Optional to Hear:
            Trade Talks #91, "Can Trade Adjustment Assistance Work?" 7/4/19 | Podcast [19:04 minutes]
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Quiz 11, Due Fri, Nov 22 11:59 PM
Safeguards & TAA
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E.Dumping and Anti-Dumping Policy (Classes 23, 24: Nov 20, 25) [60 pp + Opt 8 pp] Questions
Jackson, Ch. 10 Canvas. [33 pp]
Deardorff, "Economic Perspectives on Anti-Dumping Law" | Online (PDF) [15 pp]
~Jakob, "Lesser Duty Rule and Community Interest in Anti-dumping" | Online-Springer (PDF) [5 pp]
EC DG-Trade, "Anti-dumping measures" | Online [2 pp]
Hayashi, "U.S. Downgrades Russia to Nonmarket Economy" | Canvas. [2 pp]
Leahy et al., "China launches anti-dumping probe into EU pork imports" | Canvas. [3 pp]
      Optional to Read:
            Harris et al., "Brazil launches China anti-dumping probes after imports soar," | Canvas. [4 pp]
            Wall Street Journal Editorial Board, "Protectionists Go to the Mattresses," | Canvas. [2 pp]
            Politi, "Janet Yellen warns China against clean energy dumping," | Canvas. [2 pp]
      Optional to Hear:
            Trade Talks #80, "Zeroing: The Biggest WTO Threat You've Never Heard Of" 4/9/19 | Podcast [22:14 minutes]

THANKSGIVING BREAK, NOV 27-29

F.Economic Sanctions (Class 25: Dec 2) [45 pp + Opt 15 pp] Questions
Haass, "Economic Sanctions: Too Much of a Bad Thing" | Online. [10 pp]
Masters, "What Are Economic Sanctions?" | Online [12 pp]
Mulder, "The Sanctions Weapon" | Canvas. [4 pp]
Alderman, "Leave Russia? A Year Later Many Companies Can’t, or Won’t." | Canvas. [4 pp]
Rodriguez, "The harm that sanctions do to the vulnerable" | Canvas. [3 pp]
Kantchev et al., "How Sanctioned Western Goods Are Still Flowing Into Russia" | Canvas. [7 pp]
Bounds, "EU prepares tariffs on Russian goods exempt from sanctions" | Canvas. [2 pp]
Belton and Stein, "Russia financial system shaken after U.S. imposes new sanctions" | Canvas. [3 pp]
      Optional to Read:
            Elliott, "Evidence on the Costs and Benefits of Economic Sanctions" | Online. [6 pp]
            Stein and Cocco, "How four U.S. presidents unleashed economic warfare across the globe" | Online. or Canvas. [9 pp]
      Optional to Hear:
            Trade Talks #178, "Why sanctions to stop Russian gas pipelines backfired" 2/19/23 | Podcast [53:11 minutes]
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Quiz 12, Due Fri, Dec 6 11:59 PM
Dumping & Anti-dumping
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G.Subsidies and Countervailing Duties (Class 26: Dec 4) [54 pp + Opt 3 pp] Questions
KOM: [11 pp]
         "Export Subsidies"
         "Sophisticated Arguments for Activist Trade Policy"
         "BOX: A Warning from Intel's Founder"
         "CASE STUDY: When the Chips Were Up"
     12th Ed.: Ch. 9, pp. 232-233, Ch. 12 pp. 302-310
     11th Ed.: Ch. 9, pp. 226-229, Ch. 12 pp. 298-306
     10th Ed. (trade only): Ch. 9, pp. 217-218, Ch. 12 pp. 293-296
Jackson, Ch. 11 Canvas. [25 pp]
Chazan et al., "A global subsidy war? Keeping up with the Americans" | Canvas. [13 pp]
European Commission, "Commission launches investigation on subsidized electric cars from China" | Online. [3 pp]
Espinoza and Bounds, "EU launches probe into Chinese wind turbine companies" | Canvas. [2 pp]
      Optional to Read:
            Baschuk, "US Treasury Rolls Out Guidelines for Electric Car Subsidies" | Canvas. [3 pp]
      Optional to Hear:
            Trade Talks #116, "Fish Subsidies. What’s the Catch?" 12/19/19 | Podcast [28:27 minutes]
            Trade Talks #184, "The US-EU fights over electric vehicles and the Inflation Reduction Act" 5/7/23 | Podcast [46:28 minutes]
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Paper 3, Due Wednesday, Dec 11 8:30 AM

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*** LAST CLASS, Monday Dec 9 ***
We will hold class, as usual, but with no assignments.
Class will be review and Q&A.
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Quiz 13, Due Fri, Dec 13 11:59 PM
Sanctions and Subsidies
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