Poliey, Planning, andR WORKINlN' Trade Polcy Country Economics Department The World Bank September 1988 WPS 83 WVelfare Costs of U.S. Quotas on Textiles, Steel, and Autos Jaime de Melo and DavidTarr Protectionism is popular but costly: the United States loses $21 billion a year in welfare costs through quotas on textiles, steel, and autos. TihePolicy. Planning, and Research Cnplex distributes PPR WoAking Ppers to dissarnate the findings of work in progms and to 0acoungethe exchnge of ides among Bank staff and all others interusted in developmern issues. These papers carry the names of the authors. rcefectondytheir views, and should beuised and cited accordingly.The findings, interpretations, and conclusions are the authors' own. They should not be attributed to the World Bank, its Board of D;xctors, its management. or any of its memnber catries. Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized