A "surge in protectionism"

by

The Wall Street Journal says that a surge in protectionism is threatening to exacerbate our global economic pain. The story’s elements should be familiar to those that follow international trade:

  • Lobbies for industries like steel and automobiles are pushing for protection.
  • Countries have some room to raise tariffs since bound rates exceed applied tariffs. [As Richard Baldwin stressed]
  • Industries’ demand for anti-dumping measures is rising. [As Joseph Francois warned]
  • The G20 has been ineffective: “When the group last met, in mid-November, it agreed to ‘refrain from raising new barriers’ to trade or investment over the following 12 months. But a few days later, India increased tariffs on steel, iron and soybeans.” [As Baldwin and Simon Evenett lamented]

That said, this is far from Smoot-Hawley.

Advertisements

2 Responses to “A "surge in protectionism"”

  1. laura & tony » global integration : not the solution Says:

    […] WSJ article (via Dingel, with some additional points) discusses fears of a surge in protectionism. Particularly interesting is the argument that global […]

  2. Glen M Says:

    Interestingly the loudest calls to refrain from protectionism are from China. This, though, does not signal a full embrace of capitalism but is indicative of maintain its mercantilist status quo.

Comments are closed.