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Today, American citizens will vote for a new president to enter the White House; almost certainly either Republican Donald Trump or Democrat Hillary Clinton. Throughout this election we have witnessed a backlash against international trade. Trump has suggested that he might abrogate treaties such as NAFTA and other agreements which facilitate international trade. Both Clinton and Trump oppose the Trans-Pacific Partnership.
Anti-trade sentiment has been rising across the Atlantic in Europe. Recently, the Comprehensive Economic and Trade Agreement between Canada and the EU almost collapsed due to opposition in Belgium and there is opposition from groups in France, Germany, and the UK against the Transatlantic Trade and Investment Partnership.
Another increasing trend in both Europe and the US is the rise in anti-immigrant sentiment. Murat Genç has written for the IZA World of Labor on the impact of migration on trade. He says that “trade increases on average by 1.5% when the number of immigrants increases by 10%."
Should policymakers be concerned about the impact of anti-trade barriers on the labor market? L. Alan Winters says that policymakers should not expect international trade policy to have major or even predictable effects on aggregate employment.
We've reviewed the key issues which have dominated the American presidential election. For further analysis on the impact of trade policy, read:
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