The recent trend towards protectionism in global trade has been described as a ‘profound mistake’ by experts and economists. The return to protectionist policies, such as tariffs and trade barriers, is seen as damaging to the global economy and could lead to a range of negative consequences for both developed and developing countries.
The rise of protectionism can be seen in the trade disputes between the United States and China, as well as the United Kingdom’s decision to leave the European Union. These developments have led to increased tensions and uncertainty in global trade, and have raised concerns about the potential for a trade war that could have serious implications for the world economy.
In a recent article in POLITICO, experts argue that the return to protectionism is a ‘profound mistake’ that will ultimately harm the interests of all nations involved. They argue that the benefits of free trade, such as lower prices for consumers and increased economic growth, far outweigh any short-term advantages that protectionist policies may bring.
Furthermore, they warn that protectionism can lead to retaliation from trading partners, further escalating trade tensions and leading to a downward spiral of retaliatory measures that ultimately harm all parties involved. This has already been seen with the tit-for-tat tariffs between the United States and China, which have had negative effects on both economies.
The article also points out that protectionism can lead to reduced innovation and competitiveness, as companies may become complacent in a protected market and fail to invest in research and development. This could ultimately harm the long-term growth prospects of these industries and lead to job losses and economic stagnation.
In conclusion, the return to protectionism is seen as a ‘profound mistake’ that could have serious and lasting consequences for the global economy. Rather than resorting to protectionist measures, the experts argue that countries should work together to address the root causes of trade imbalances and seek to promote free and fair trade that benefits all nations. Ultimately, the negative effects of protectionism far outweigh any short-term gains, and it is in the best interests of all countries to avoid heading down this destructive path.