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Fast-track authority and international trade negotiations

Research output: Contribution to Journal/MagazineJournal articlepeer-review

Published
  • Paola Conconi
  • Giovanni Facchini
  • Maurizio Zanardi
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<mark>Journal publication date</mark>2012
<mark>Journal</mark>American Economic Journal: Economic Policy
Issue number3
Volume4
Number of pages44
Pages (from-to)146-189
Publication StatusPublished
<mark>Original language</mark>English

Abstract

We develop a simple model of trade relations in which legislators with different stakes in import-competing and export industries decide whether to grant fast-track authority (FTA) to the president, giving up the power to amend international trade agreements. We show that strategic delegation motives are key to understanding FTA votes, which involve a decision between alternative country representatives: the executive or the majority in Congress. We then examine the determinants of all votes by US congressmen on FTA since the introduction of this institutional procedure in 1974. Our empirical analysis provides strong support for the predictions of the model.

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