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Protectionism 2.0: New Reality in the Age of Globalisation

364
Rubric: Economy, Economic Theory
DOI: 10.20542/0131-2227-2020-64-8-37-45
V. Milovidov (vmilovidov@hotmail.com),
MGIMO University, 76, Prosp. Vernadskogo, Moscow, 119454, Russian Federation;
Russian Institute for Strategic Studies, 15B, Flotskaya Str., Moscow,125413, Russian Federation.
N. Asker-Zade (anailia@yandex.ru)
MGIMO University, 76, Prosp. Vernadskogo, Moscow, 119454, Russian Federation
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Abstract. The article analyzes the new stage of protectionism, which is a complex phenomenon that cannot be mechanically opposed to the long-term trend towards globalization. Such protectionism has its distinctive features, and the authors define it as protectionism 2.0. The long-term trends of changes in world economic relations are assessed. The authors view the decision of the US on import duties as tactical, designed to provide the necessary pressure on the largest strategic economic partners of the United States in order to change the structure of foreign trade and decrease the trade deficit in the long term. The long-term American goal is to change the tools and forms of protection of national business, this will ensure the country’s long-term advantage in the trade and economic sphere. The US increasingly use tools of extraterritorial protectionism to get the unilateral preferences in international competition. Along with that, the US support initiatives regarding the ban on traditional protectionist measures of other countries, including numerous subsidies to national producers. Also, the article shows that the status of developing countries is essential for further discussions in WTO. The authors argue that this status will be the subject of revision, mostly in the case of China or India. The article notes that the phenomenon of protectionism 2.0 indicates the beginning of radical and long-term changes in the entire system of world trade. It is in the interests of the US to maintain and strengthen the American-centrism of the post-war economic system. The authors suggest that in the future, along with the transformation of measures of international regulation of foreign trade, the issue of reforming the world monetary system will be put on the agenda.

Keywords: protectionism, globalization, world economy, import tariffs, sanctions, exterritoriality, trade policy, tariffs war, subsidies, WTO


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For citation:
Milovidov V., Asker-Zade N. Protectionism 2.0: New Reality in the Age of Globalisation. World Eñonomy and International Relations, 2020, vol. 64, no. 8, pp. 37-45. https://doi.org/10.20542/0131-2227-2020-64-8-37-45

Contents World Eñonomy and International Relations. 2020, vol. 64, no. 8

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