PUBLIC CHOICE THEORY, PROTECTIONISM AND THE CASE OF NAFTA

David Quartner

Economic Affairs, 2006, vol. 26, issue 1, 59-60

Abstract: Public choice theory suggests that the political process has an in‐built tendency to promote protectionist measures favoured by organised interest groups rather than trade liberalisation that would benefit society as a whole. But the example of the North American Free Trade Agreement shows that political campaigns in support of free trade can successfully mobilise public opinion to neutralise the power of special‐interest groups. Therefore, it is imperative that politicians and others who believe in free trade remind the public of its benefits.

Date: 2006
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