Liberalizing U.S. Trade with the Eastern Bloc: What are the consequences?

Jose Mendez, Donald J. Rousslang

Research output: Contribution to journalArticlepeer-review

2 Scopus citations


This paper provides estimates of the trade and welfare consequences of removing the high discriminatory tariffs that the United States imposes against imports from the Soviet Union and its allies. These imports are now taxed at Smoot-Hawley rates. The estimates of the trade effects exceed those of previous studies, in part because the recent "Tokyo Round" of multilateral trade concessions has increased the tariff discrimination against the non-MFN (Most Favored Nation) suppliers. The study is the first to assess the welfare consequences of eliminating this discrimination. It is estimated that the overall annual gain to the United States would be about $1.8 billion and that the annual gain to the communist suppliers would be between $1.2 billion and $1.7 billion.

Original languageEnglish (US)
Pages (from-to)491-507
Number of pages17
JournalJournal of Comparative Economics
Issue number4
StatePublished - Dec 1989

ASJC Scopus subject areas

  • Economics and Econometrics


Dive into the research topics of 'Liberalizing U.S. Trade with the Eastern Bloc: What are the consequences?'. Together they form a unique fingerprint.

Cite this