Institutional Persistence and Change of the U.S. Trade Policy Regime

Abstract

Policy regime refers to those institutional constraints that shape and constrain the whole policymaking process. Once established, policy regimes tend to endure for a long time despite environmental changes. However under some crisis circumstances, there may occur institutional change of policy regimes. The U.S. trade policy regime, established in the 1930s, had lasted for about half a century with two major traits: free trade as basic ideology and delegation of policymaking authority to the Administration. However, huge trade deficits in the 1980s triggered institutional change. The new trade policy regime, which still persists today, is characterized by reciprocity as a new policy ideology and renewed Congressional activism in trade matters. This paper analyzes why and how that institutional change of U.S. trade policy took place.