Do We Need Protectionism?

Abstract

This paper looks at trade protectionism in an attempt to determine whether mature economies entering the twenty-first century need to protect their domestic producers from foreign competition. Part I reviews and analyzes the most common arguments that have been offered in support of protectionist policies over the last few centuries. Part II discusses some protectionist features of NAFTA and the recently concluded Uruguay Round of GAIT to determine whether these provisions are in the best interests of the general public. Part III concludes that there is no need to protect domestic producers at the expense of the general public, and that the only trade policy that benefits the general public is one of total, immediate and unilateral free trade.