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<div><br class=""><div class="">Begin forwarded message:</div><br class="Apple-interchange-newline"><div style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px;" class=""><span style="font-family: -webkit-system-font, Helvetica Neue, Helvetica, sans-serif; color:rgba(0, 0, 0, 1.0);" class=""><b class="">Date: </b></span><span style="font-family: -webkit-system-font, Helvetica Neue, Helvetica, sans-serif;" class="">April 22, 2015 at 10:29:56 AM EDT<br class=""></span></div><div style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px;" class=""><span style="font-family: -webkit-system-font, Helvetica Neue, Helvetica, sans-serif; color:rgba(0, 0, 0, 1.0);" class=""><b class="">From: </b></span><span style="font-family: -webkit-system-font, Helvetica Neue, Helvetica, sans-serif;" class="">Dan Beeton <<a href="mailto:beeton@cepr.net" class="">beeton@cepr.net</a>><br class=""></span></div><div style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px;" class=""><span style="font-family: -webkit-system-font, Helvetica Neue, Helvetica, sans-serif; color:rgba(0, 0, 0, 1.0);" class=""><b class="">To: </b></span><span style="font-family: -webkit-system-font, Helvetica Neue, Helvetica, sans-serif;" class="">Arthur Stamoulis <<a href="mailto:arthur@citizenstrade.org" class="">arthur@citizenstrade.org</a>><br class=""></span></div><div style="margin-top: 0px; margin-right: 0px; margin-bottom: 0px; margin-left: 0px;" class=""><span style="font-family: -webkit-system-font, Helvetica Neue, Helvetica, sans-serif; color:rgba(0, 0, 0, 1.0);" class=""><b class="">Subject: </b></span><span style="font-family: -webkit-system-font, Helvetica Neue, Helvetica, sans-serif;" class=""><b class="">Fwd: New Paper Finds Gains from Multilateral Trade Liberalization to Be "Extremely Small"</b><br class=""></span></div><br class=""><div class="">
  

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    Hi Arthur,<br class="">
    <br class="">
    I thought our latest paper would be of great interest to the CTC
    list. While it looks at IMF modeling on WTO trade liberalization, as
    we note below, "if applied to the proposed Trans-Pacific
    Partnership, the results would be similarly small."
    <div class="moz-forward-container"><br class="">
      Cheers,<br class="">
      <br class="">
      Dan<br class="">
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                      rgb(0, 102, 153);" class=""><a moz-do-not-send="true" href="http://org.salsalabs.com/dia/track.jsp?v=2&c=1nWb%2BKHGGD2o9j0oOCgfe8b7R5M%2Fg3sg" class=""><img moz-do-not-send="true" title="Center for
                          Economic and Policy Research" src="http://www.cepr.net/templates/CEPR_subpage/images/header.gif" alt="CEPR logo" border="0" height="90" width="445" class=""></a></td>
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                        <h2 style="text-align: center;" class=""><a moz-do-not-send="true" href="http://org.salsalabs.com/dia/track.jsp?v=2&c=C44WN3gLsnXg0k9KorkX60NPXqAu4eZx" class=""><span style="font-size: 12px;" class="">New
                                Paper Finds Gains from Multilateral
                                Trade Liberalization to Be “Extremely
                                Small”</span></a></h2><p style="text-align: center;" class=""><i class=""><span style="font-size: 12px;" class=""><span style="color: rgb(0, 102, 153);" class="">IMF’s
                                Own Modeling Shows Gains of About 43
                                Cents Per Person, Per Month, in the US</span></span></i></p>
                        <hr class=""><p class=""><b class="">For Immediate Release:</b> April 22, 2015<br class="">
                          <b class="">Contact: </b>Dan Beeton, 202-239-1460</p><p class=""><b class="">Washington, D.C.</b>- A <a moz-do-not-send="true" href="http://org.salsalabs.com/dia/track.jsp?v=2&c=%2BHS6yvS97qVgrrIqdR9k08b7R5M%2Fg3sg" class="">new
                            paper</a> from the <a moz-do-not-send="true" href="http://org.salsalabs.com/dia/track.jsp?v=2&c=UlJnQB8CgN8SEfnKYVF%2BPsb7R5M%2Fg3sg" class="">Center
                            for Economic and Policy Research</a> (CEPR)
                          examines recent IMF research on gains from
                          multilateral trade liberalization, as under
                          the WTO. This research shows that gains would
                          be equal only to about 0.014 percent of
                          consumption, or about 43 cents per person, per
                          month, in the United States. The CEPR paper, “<a moz-do-not-send="true" href="http://org.salsalabs.com/dia/track.jsp?v=2&c=N3u1rIg6Jigeulo%2F7RsCCsb7R5M%2Fg3sg" class="">The
                            Gains from Trade in a New Model from the
                            IMF: Still Very Small</a>” by <a moz-do-not-send="true" href="http://org.salsalabs.com/dia/track.jsp?v=2&c=MaCRvgBLxAhRRka5Iv9C9sb7R5M%2Fg3sg" class="">David
                            Rosnick</a>, examines modeling by the IMF,
                          which claims to find that WTO agreements to
                          liberalize trade are worth more than
                          previously thought. CEPR’s paper shows that in
                          fact the gains are relatively small.<br class="">
                          <br class="">
                          “This paper again raises the question of
                          whether the trade-offs that workers and
                          consumers make in so many areas—including
                          lowered safety and environmental standards,
                          higher prices for pharmaceuticals and other
                          patent-protected goods, and the undermining of
                          local and national laws—are worth it
                          considering how paltry the gains are,”
                          economist and lead author of the paper David
                          Rosnick said. “I don’t think most Americans
                          would choose to sacrifice so much in the name
                          of lowered trade barriers just for 43 cents a
                          month more in their pockets.”<br class="">
                          <br class="">
                          The IMF model focuses on liberalization under
                          the WTO, but if applied to the proposed
                          Trans-Pacific Partnership, the results would
                          be similarly small. <br class="">
                          <br class="">
                          The IMF model examines the impacts each of
                          unilateral, bilateral and multilateral trade
                          liberalization. The modeling shows that
                          countries can be worse off when they
                          unilaterally lower protective trade barriers,
                          as countries are often pressured to do in
                          negotiations with the U.S. or other developed
                          countries. Negotiations at the WTO and in
                          other multilateral fora are also sometimes
                          lopsided, such as WTO rules that prohibit
                          various agricultural supports in developing
                          countries even while large subsidies in
                          developed countries are maintained.<br class="">
                          <br class="">
                          The <a moz-do-not-send="true" href="http://org.salsalabs.com/dia/track.jsp?v=2&c=C1ReLTBI7dUh6IdL6K9fxcb7R5M%2Fg3sg" class="">CEPR
                            paper</a> shows that in the modeling by the
                          IMF, which takes into account the trade-off
                          between labor and leisure when full employment
                          is assumed, workers must choose to work more
                          if production (to facilitate more trade)
                          increases. This has consequences that are not
                          considered in the IMF’s modeling, including
                          the implications for climate change from
                          increased production and consumption, versus
                          increased leisure time.<br class="">
                          <br class="">
                          The paper notes that perhaps the most
                          significant result of the IMF model is that it
                          shows that even when there is market power in
                          international trade, the gains that can occur
                          with even multilateral trade liberalization
                          are very small.<br class="">
                          <br class="">
                          “The IMF has a long history of supporting
                          policies of trade liberalization,” Rosnick
                          said. “Yet the gains from multilateral
                          liberalization are quite small, even according
                          to the IMF paper’s own modeling.”</p><p style="text-align: center;" class="">###</p>
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