Approaches And Regime Of The American Institutional Trade Protection

Sub-prime mortgage crisis led to the finance crisis and most countries affected, and then adopted trade protection measures, "Buy America" provisions in Obama＄787 billion economic stimulus bill is the best example. G20 conference proposed every participant carried out the free trade policy, but it seemed had no function. Free trade policy is the best choice in terms of economic theory, but political officers have their social and administrative goals so that there is no high unemployment rate and people think that their government cares about their lives. On the other hand, governments encourage new industry to take up the advantage in the next competition round, for example, the America established new energy plan. The America adopts trade protection policy because they have the mechanism advantage that their policy is legitimate in the WTO framework. Under this situation, developing countries are in the disadvantage of competition. The focus of this thesis is the institutional advantage of developed countries just like the US. Through the analysis of institution, we can understand how these mechanism advantages generated, and analyze what factors affect this system. Then we can find what weaknesses the WTO agreements have and how these weaknesses cause the competition disadvantage in world trade. We can understand that trade currently is unfair and this unfair condition is on the way.The research methods of this thesis include both political economics and constitutional economics. The first part of this paper is introduction, background and significance. The second part is an article review, intends to introduce the perspectives of free trade and trade protection, to see how these two parts analyzed the advantages and disadvantages of trade protection. This part is a literature review, covers journal articles related to this topic published in the past, so there is no personal standpoint. The third part is the implementation mechanism of American institutional trade protection. The most important point is how to judge a policy in terms of free trade or trade protection. This paper adopts mathematical method to calculate the extent of open trade. The American trade protection institution includes three parts:legal framework, political mechanism and interest group. In these three parts. interest group is the most important one that affects the shaping of American trade protection mechanism, and interest group has affected the US trade policy for many years. Many professional research institutions in the U.S. have analyzed the world trade conditions for export industries. American Anti-dumping Law is a good example of trade protection mechanism, so the forth part will introduce this "excellent" law that uses the weaknesses of WTO to occupy the advantage of trade. This part also introduces the effect of this law to see how the whole society gives response to this law especially the interest group. The fifth part is conclusion and suggestion.Advantage and unfairness in the institutional system are the most serious problems in world trade, developing countries especially China have to pay attention to this situation, while abiding by the WTO rules on the one hand, on the other hand. China has to improve its trade condition and promote national competitiveness.