Abstract

Although Canadians in general would benefit from a freetrade arrangement with the United States, it is possible that some individuals or groups will be worse off. We therefore face a conflict between the economic welfare of the average citizen and the political decision of the median person. This conflict is explored empirically in the context of recent estimates of industry-by-industry effects of free trade in Canada. This study concentrates on workers as voters trying to protect their current employment. An examination of 29 industries shows that nine would experience a decline; however the median voter is likely to be in an expanding industry and therefore will favour free trade, but the existence of voting or lobbying costs could reverse that result.

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