The Kennedy Round: Evidence on the Regulation of International Trade in the United States

Abstract

The purpose of this paper is to analyze and provide empirical evidence regarding the regulation of international trade flows. Our goal is to provide an explanation of the changes in the interindustry pattern of trade restrictions which emerged from the Kennedy Round of tariff negotiations. The principal conclusion of the analysis is that the pattern of protection which resulted from the Kennedy Round was shaped to minimize the domestic political disruption resulting from liberalization. Industries which faced significant import threats and whose characteristics enhanced their potential political influence were able to maintain tariff protection in the face of overall liberalization. The potential impact of the agreed-upon tariff reductions was partially undermined by the introduction of offsetting nontariff trade barriers (NTBs). In addition, NTBs were introduced systematically in industries that were becom