Be Careful to Not Misuse the Economic Estimates of the Costs and Benefits of Trade Agreements

Cato Senior Fellow Dan Pearson is the author of today’s Cato Online Forum essay, which explains the value and limitations of the International Trade Commission’s economic assessments of trade agreements. Too often, parties opposed to trade liberalization misappropriate the estimates in ways that raise doubts about the integrity of the models. Dan’s conclusion: 

Supporters of trade liberalization should be prepared to counter those who would misinterpret the economic analysis of trade agreements in order to advance anti‐​trade arguments. Yes, trade liberalization will produce both winners and losers. But credible analysis clearly indicates that making markets more open and competitive will lead to improved resource allocation, expanded international trade, greater economic growth, and higher consumer welfare. Those objectives are genuinely worth pursuing. 

The essay is offered in conjunction with a TTIP conference being held at the Cato Institute on Monday, October 12. Read it. Provide comments. And please sign up to attend the conference.