Endogenous and exogenous variables in trade agreement policy:

Abstract

Trade agreement negotiations are the forum in which a state tries to synchronise its trade policies with other countries. This article examines the effects of endogenous and exogenous variables in trade agreement decision-making. The study concentrates on Finland's most important trade agreement negotiations with the Soviet Union, Germany, Great Britain, and EFT A from the 1930s to the 1960s. Finland was a small, open economy that was dependent on foreign trade. In the 1930s Finland had to adapt to international protectionism, which came to dominate international trade until the late 1950s. During the Second World War Finland had to regulate her foreign trade as a part of rationing systems. After the war protectionist ideas continued to dominate international trade policy decision-making. Accordingly, many regulative policies survived into the post-war period too. Finally, deregulation in Finnish foreign trade policy started in the late 1950s, the FINN-EFTA-negotiations being the final turning point to a more liberal era in foreign trade. The essential question in the article is, what kind of influence did the endogenous interests have on Finnish trade policy decision-making considering the various situations in international politics, for example, protectionist and deregulative tendencies.

Helpful comments on earlier drafts of the paper were received from Timo Myllyntaus and Margrit Muller, together with participants at the IEHA Congress in Social Sciences in Amsterdam, the Netherlands, April 2000. The authors also wish to thank certain anonymous commentators for their remarks.

Helpful comments on earlier drafts of the paper were received from Timo Myllyntaus and Margrit Muller, together with participants at the IEHA Congress in Social Sciences in Amsterdam, the Netherlands, April 2000. The authors also wish to thank certain anonymous commentators for their remarks.

Notes

Helpful comments on earlier drafts of the paper were received from Timo Myllyntaus and Margrit Muller, together with participants at the IEHA Congress in Social Sciences in Amsterdam, the Netherlands, April 2000. The authors also wish to thank certain anonymous commentators for their remarks.