CoPS/IMPACT Working Paper Number G-146

Title: Macro, industry and state effects in the U.S. of removing major tariffs and quotas

Authors: Peter B. Dixon, Maureen T. Rimmer and Marinos E. Tsigas


We use a 500-industry CGE model of the U.S. to simulate the macro, industry and state effects of removing major U.S. tariffs and quotas. We find that this would generate a welfare gain of 0.07 per cent. For most industries, the output change would be negligible but for sugar, butter and several textile industries output contractions would be large. The state employment changes are all between -0.5 and 0.2 per cent. We explain the results by elementary mechanisms, in a way that does not require prior knowledge of the underlying CGE model.

JEL Classification:C68, R13, F14.

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