American Neo-protectionism devastating for global trade

By Sumantra Maitra
0 Comment(s)Print E-mail China.org.cn, April 4, 2016
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This is a standard American cry against China and Japan. For a supposedly free trade country, which propagates the virtues of the free market and competition, the United States is actually one of the most protectionist countries in the world. The senate threatened to raise barriers in 2011, just after free trade bills were agreed to with Colombia and South Korea. That resulted in China accusing the United States of protectionism. The same scenario repeated itself in 2012 and 2014. The practice of protectionism is unfair under the World Trade Organization agreements, but when China joined, the United States somehow managed to bend the rules and continued targeting China, something even American economists protested.

As recently as November, China accused the United States of continuing to target Chinese products. In a report published by the Chinese Ministry of Commerce, spokesman Yao Jian wrote, "The United States, in particular, is increasing its trade dispute with China", as demonstrated by the fact that in nine months the U.S. launched 14 probes into Chinese exports.

This is a direct cause of the increase in populism across Europe and the United States. What was a traditional democratic argument is now being reflected in Republican camps, which are being filled with blue collar workers voting for Trump on the primaries who hope that he will raise trade barriers against China and Japan, thereby making their lives better overnight. The disenfranchised among these Republicans want big government for themselves. Regardless of the fact that Donald Trump's policies are economically unfeasible in this globalized connected world and don't understand or follow simple economic principles of comparative advantage and competition, they are being lapped up and provided as an autarkic smart 17th century solution to a complex modern problem.

Thankfully policy makers are pushing back against it. And no matter who wins in November, they will be bound by the traditional checks and balances of American governance. But it is not time to show complacency; given the rise of both Sanders and Trump, China and Japan should both be prepared for rough days to come.

Sumantra Maitra is a columnist with China.org.cn. For more information please visit:

http://www.china.org.cn/opinion/SumantraMaitra.htm

Opinion articles reflect the views of their authors only, not necessarily those of China.org.cn.

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