Mobilizing Export Groups: Collaboration and Strategies

Sakshi Pandey

Abstract

While group mobilisation limits the kind of new bargains that may be made, it also explains the durability of existing agreements. Leaders seldom break a GATT trade agreement, even when pressured by large rent-seeking sectors. This stability was not achieved as a result of GATT penalties against such modifications. However, modifying individual tariffs was quite simple under the laws, thanks to a variety of safeguards[1]–[3].GATT rules. Tariffs might be changed every three years during the open season, in between these periods out of season, and/or under Article 28:5, as long as the overall tariff level remained constant. Keeping the total level of tariffs consistent, however, proved difficult for domestic legislators. The difficulty with offering compensation was that it created a trade-off between the aid-seeking group and another producer. Politicians struggle with this sort of trade-off.