The New Protectionism and the Future of the Global Trading System.

Abstract

A new protectionism has emerged that is often strategic, offensive and value-based compared to more ordinary forms of protectionism such as punitive tariffs or anti-dumping duties. The success of the WTO-led system may indirectly have caused the current shift towards subsidies. Arguments for using protectionism are value-based or idiosyncratic, rather than centred on solving common international problems in trade (i.e. market failures, provision of public goods and the combat of illicit forms of trade). While the new protectionism may not have had tangible results yet, the long-term consequences for production location can be profound. WTO compatibility of the new protectionism is often placed in question. But current actor strategies before the WTO (such as inactivity, disruption and diversion) shows that more than compatibility is at stake.

Keywords: Trade policy, event data, tariffs, subsidies, World Trade Organisation, International Collaboration

JEL Classification: F13, F21, F53, F68