A Comprehensive Exploration of Trade Protectionism in the 21st Century

Abstract

Trade policy is based on the view that the world is made up of many distinct national economies, which are continuously interacting at an arm's length. The World Trade Organization controls the operation of a system of rules designed to maintain integrity between these economies, in relation to the realm of trading and business.

In case a trade dispute between governments breaks out, it steps in as the globe’s trade referee and acts as a platform for member states to work their way to trade agreements in order to completely resolve the issue.

The trade liberalization accomplished since its establishment in 1995 has raised global income by around $510 billion. But its mission of economic integration has lately been under great threat from protectionist policies globally, and without reform, is currently at a risk of being cast aside in the course of the modest magnitude of the new protectionism.

The paper seeks to examine the potential behind free trade, the rationale behind the concept of trade protectionism and the subsequent repercussions on international trade, which prove harmful to the economies. It studies the gradual shift in global trade, from a pure mercantilist mindset to a newer modus operandi wherein the imposition of trade barriers is becoming harder to detect, with special focus on nations with the world’s highest GDPs.