This document summarizes the history of international trade theory and policy. It discusses the early trade theorists Adam Smith and David Ricardo, and Ricardo's theory of comparative advantage. It then outlines major trade agreements and negotiations including the Smoot-Hawley Tariff, GATT, Tokyo Round, Uruguay Round, and Doha Round. Key issues addressed in negotiations have included tariffs, non-tariff barriers, subsidies, agriculture, services, intellectual property, and developing country concerns.

1. Y376 International Political Economy January 25, 2012

3. Graphical Version of Ricardian Theory

7. Figure 3-1. Average U.S. Tariff Rates on Dutiable Imports, 1821-2000, in Percentages Source: U.S. International Trade Commission; U.S. Department of Commerce, Bureau of the Census, Historical Statistics of the United States ; and Statistical Abstract of the United States , various years.

8. Overall Tariff Levels and Trade/GNP, 1850-1990

9. Figure 3-2. Growth in World Exports, 1958-2006, in Billions of Current Dollars Source: International Monetary Fund, Direction of Trade Statistics Yearbook (various years).

10. Figure 3-3. Trade/GDP in the US, Britain, Germany, France, and Japan, 1960-2006, in Percentages Sources: World Bank, World Development Indicators 2001 CD-ROM (Washington, D.C.: World Bank, 2001): OECD.Stat, http://stats.oecd.org/ .

11. Interregional Trade Flows, 1990

15. Example of a Subsidies Dispute: Airbus vs. Boeing This is a Boeing 777 This is an Airbus 300 Latest WTO ruling (video)