GLOBAL TRADE, PROTECTIONISM AND ECONOMIC NATIONALISM
SIMPLIFIER
1. What is protectionism? Protectionism is an economic policy where countries impose tariffs, import bans, export bans, and other trade barriers to protect their domestic industries from foreign competition.
2. Why are countries turning towards protectionism? Countries are adopting protectionist measures in response to global challenges like pandemics, climate change, rising poverty, and inequality. These measures aim to protect domestic industries and maintain living standards.
3. What actions has the US taken in this protectionist trend? The US has imposed steep tariffs on Chinese imports, including a 100% duty on Chinese electric vehicles, to protect American jobs and industries from foreign competition.
4. How is Europe responding to Chinese competition? Europe is considering similar measures to the US to prevent domination by Chinese products in sectors like solar panels, electric vehicles, and essential chips.
5. What other regions are adopting protectionist policies? Latin American countries such as Brazil, Chile, and Mexico have imposed prohibitive tariffs on Chinese steel products to protect their domestic industries.
6. What is economic nationalism? Economic nationalism is a policy framework where countries prioritize their own economic interests, often through protectionist measures, to achieve self-reliance and protect national industries.
7. How has India responded to these global trends? Under Prime Minister Narendra Modi, India has ramped up trade protectionism, promoting self-reliance and the “Make in India” initiative to boost domestic manufacturing and reduce dependency on foreign goods.
8. What are the potential risks of rising protectionism? Rising protectionism could undermine global trade recovery, create economic tensions, and lead to a power-based global economic system, as noted by the World Trade Organization (WTO).
9. What solutions are proposed to balance economic growth and protectionism? Working through multilateral institutions that reinforce a flexible and just global order is suggested to achieve economic growth, social progress, and environmental sustainability.
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