Problem

Regional protectionism

Other Names:
Competitive regional economic blocs
Economic regionalism
Discriminatory formation of regional trade groupings
Discriminatory trade agreements
Nature:

The world is increasing settling into the pattern of three big protectionist trading blocs: the North American, European and Japanese-Asian.

Incidence:

The difficulties faced by developing countries in exporting have been heightened with the formation of regional groupings among industrialized countries and the consequent removal of barriers to their intra-trade. Among the countries outside these groupings, the developing countries tend to be most vulnerable to the resultant differential tariff and non-tariff treatment, given their initial competitive disadvantages. As a result of the formation of such groupings and other preferential arrangements, almost two-fifths of the intra-trade in manufactured and semi-manufactured products among the developed market economy countries are already on a preferential basis. With the enlargement of the EEC/EU, the share of preferential intra-trade among developed market economy countries is even greater. In addition, trade in industrial products between EEC/EU member states and other European developed market economy countries is increasingly on a preferential basis.

Claim:

Multilateral trade produces a higher standard of living than is possible under competitive regional blocs.

Problem Type:
C: Cross-sectoral problems
Related UN Sustainable Development Goals:
GOAL 17: Partnerships to achieve the Goal
Date of last update
10.07.2019 – 18:38 CEST