Trade

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The effect of U.S.trade laws on poverty in America
(Institute of Public Policy studies , Michigan, 1991-06) Deardorff, Alan V.; Haveman, Jon D.
This study examines the relationship between the application of United states trade laws, on the one hand and the distribution of income and levels of poverty in America, on the other. The use of U.S. trade laws in recent years has taken the form of ''administered protection'' whereby industries are able to seek protection from imports on the grounds that they are being injured by imports or that they are subject to unfair competition from abroad. This study draws upon a trade action inventory that has been compiled on the actions that sought protection and whether they received it. By comparing the experiences of these industries under the trade laws with the poverty rates, wage levels, and rates of unemployment that are associated with these industries or the regions in which they operate, this study seeks to determine whether this protection has served to alleviate or to exacerbate poverty. The paper concludes that there is a bias inherent in the application for and administration of administered protection that tends towards increasing the incidence of poverty.