ABSTRACT
This study provides an institutional and empirical analysis of external protectionism and internal liberalization in the European Community. It explains policy choices within given institutions and the change in these institutions by examining the EC’s political decision-making process. Although EC trade protection should theoretically be classified as administered protection it is in fact highly politicized. This is because EC bureaucrats have considerable discretion in administering and negotiating trade policy but – being under close scrutiny by the EC member governments through the Council – they usually have to apply this discretion in the interest of member governments. The outcome observed in the EC is therefore similar to the outcome of political protection in the U.S.. Protection is geared to accommodate domestic producer interests. The latter claim injury by imports and lobby for relief. Those who have more political influence have a better chance of being protected against foreign competition.
