Trade Policy in Historical Political Economy

Abstract

Abstract This chapter provides a brief overview of how different economic interests interact with a country’s political system in determining its foreign trade policy. The main instrument of trade policy is the import tariff. In the case of the United States, Congressional voting on trade legislation is affected by various regional economic interests. Trade policy can change as different regions gain or lose political power, and as shifts in trade flows affect different constituencies in new ways. The chapter also examines the role of political parties in the setting of US trade policy.