Cato Policy Analysis No. 252 April 15, 1996

Policy Analysis

Market Opening or Corporate Welfare?
"Results-Oriented" Trade Policy toward Japan

by Scott Latham

Scott Latham is a Philadelphia-based international trade consultant.

Executive Summary

For decades the U.S. government has singled out Japan as a country guilty of particularly grievous protectionist policies and has forced on it special trade arrangements. But trade disputes are often simply the result of American firms' enlisting government help to make up for their earlier neglect of Japan's market. They seek managed trade, not free trade. Three cases are examined:

Results-based trade policy is not about opening markets at all; it is about granting special favors to prominent and politically powerful U.S. industries.

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1996 The Cato Institute
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