Generic Drug Shortages and How a Race to the Bottom in Price has Upended 30 years of Hatch-Waxman

CPA’s report, titled “Generic Drug Shortages and How a Race to the Bottom in Price has Upended 30 years of Hatch-Waxman,” details how a loophole in the Hatch-Waxman Act has led to generic drug shortages in the U.S., offshoring of America’s domestic production of generic pharmaceuticals to China and India, and price gouging by foreign…

Tariff Incidence in the Real World: Why Consumers (Mostly) Didn’t Pay the Steel Tariffs

Summary points: The import price of steel fell in the period following the 2018 imposition of a 25% steel tariff, an indicator that steel tariffs were not passed entirely onto consumers. Steel tariffs did not lead to a proportional rise in consumer prices of steel-intensive goods, such as automobiles. In many instances, firms will internalize…

Worker-Centered Trade Means Reshoring U.S. Industries

In June, U.S. Trade Representative Katherine Tai gave a speech in which she outlined her vision of worker-centered trade, a popular phrase among Biden administration officials. According to Tai: “Build Back Better starts by growing the economy from the bottom up and the middle out and putting workers at the center of our economic plans…In…

U.S. June Trade Deficit Hits New Record of $75.7 Billion As Imports Surge

Goods Deficit Also Sets Monthly Record at $93.2 Billion Department of Commerce figures published this morning show that in June the U.S. reported a trade deficit of $75.7 billion, a new record for U.S. and world history. The deficit was 6.7 percent higher than the May figure, and 49.4 percent worse than the year-ago June…

Comprehensive ITC Study Finds Little or No Benefit For U.S. From Trade Agreements

The US International Trade Commission (ITC) recently released a comprehensive analysis of the economic impact of all trade agreements the United States has entered into since 1985. Trade agreement negotiation, passage and implementation has been controversial throughout this time period. The ITC report is significant as the first recognition by a federal government trade agency…

CPA Model: US-UK Trade Agreement Would Make Over 3,000 Unemployed, Reduce GDP in U.S.

Key Points CPA’s economic modeling of a U.S.-U.K. free trade agreement that cut tariffs to zero between the two countries shows that such an agreement would increase unemployment by more than 2,000 jobs and reduce U.S. GDP by $142 million. This economic model includes for the first time a methodology for estimating job loss due…