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Economics

How Public Opinion Constraints Influence Trade Negotiation Strategies

Quick fact

Trade negotiators often deliberately exclude clauses that are economically beneficial but politically toxic, because public opinion can block ratification even when the deal is rational on paper—a phenomenon known as 'the political constraint on trade.'

Why this is interesting

Imagine a president who believes free trade is good for the economy, yet still walks away from a deal that economists love. Why would they sabotage their own goal? Because the people voting in the next election may not agree.