Commission, in its study of barriers to trade, predicts that reducing trade barriers would not lead to an overall

loss of jobs. Protectionism reshuffles jobs from industries without import protections to industries that are

protected from imports, but it does not create more jobs.

Moreover, the costs of saving jobs through protectionism can be very high. A number of different studies have

attempted to estimate the cost to consumers in higher prices per job saved through protectionism. Table 20.2

shows a sample of results, compiled by economists at the Federal Reserve Bank of Dallas. Saving a job through

1 As of July 1, 2020, NAFTA was officially replaced with the United States-Mexico-Canada (USMCA) free trade agreement. It is
broadly similar to the original NAFTA.
480 20 • Globalization and Protectionism

protectionism typically costs much more than the actual worker’s salary. For example, a study published in
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