This paper determines the effect that offset payments under the Continued Dumping and Subsidy Offset Act (CDSOA also known as the “Byrd Amendment”) have on tariff levels that are lobbied for by U.S. producer groups. We derive the optimum antidumping tariff that would maximize the welfare of producers receiving CDSOA offset payments. We compare and contrast this newly derived “optimal antidumpin...

There is no more important global economic public policy today than that of economic integration. In every major region of the world, governments are pushing economic groupings that are common markets or have the potential to become such instruments of economic integration. The European Community (EC) is moving through this year, popularly called EC 92, towards 1 January, 1993, when it should h...

In 1901, six Australian states joined together in political and economic union, creating an internal free trade area and adopting a common external tariff. This paper investigates the impact of federation on Australia’s internal and international trade flows by studying changes in the “border effect” over this time. This is possible because Australian states reported intra-Australian trade prio...

s: In this paper, our focus is to see the impact of imperfect international capital mobility on tariff adjustment process between two countries. Assuming complete specialization of each country, the results show that the existence of an imperfect international capital market may trigger a gradual tariff adjustment. That is, when it takes time and causes idle capital in reallocating capital betw...

This paper develops the theory of the optimal tariff under the Byrd Amendment when producers are also processors. The optimal tariff in this case is equal to the optimal processor tariff (when the processor is not also a producer) and is smaller than the optimal producer tariff (when the producer is not also a processor). In a vertical market structure, the welfare of a producer/processor (P/P)...

This paper shows that the general equilibrium impacts on Canadian GDPandwelfare, of liberalizingNAFTARulesofOrigin (ROO), largely dominate the small effects of adopting a Common North American External Tariff (CET). Therefore, proposals for a North American CU should not be dismissed solely on the basis that a CET would marginally affect Canada while the negotiation process with the U.S. would ...

The welfare analyses of preferential trading arrangements have been characterized by generally inconclusive and messy results. In this paper, I attempt to give order to the analysis of one important case: a union between two small countries. The analysis has two key advantages over the existing literature. First, the model employed is fully general in that it allows for goods that are exported ...