Protectionism and economic order

The economic and commercial order established since World War II is coming to an end. A new order is being formed in which trade warfare stands out, and in which states are primarily seeking to secure their individual political and economic interests through tariffs, import quotas and other protectionist measures.

However, this protectionism could put a brake on the possibilities of global economic growth. The nature of the problems we face today is such that there is no country that can face them alone. In an interconnected world, the events in one country can have a significant impact on all the others. Problems such as climate change and geopolitical security, epidemics, overpopulation, inequality, hunger, food security, migration or unemployment require collaborative approaches to solve them at the global level.

In 1930, the U.S. approved the Tariff Act (known as the Hawley-Smoot Act), a protectionist law that aggravated the Great Depression and caused a global economic recession that forced millions of people to lose their jobs around the world.
Protectionism was shown not to be the solution. Moreover, the multilateral trading system, which brought many benefits and contributed to growth and wealth creation, no longer fulfilled its objectives. Today, the WTO is inadequate and a reform is needed to improve its functioning.

A global response is indispensable to deal with economic crises, which are getting worse but are avoidable. Because, at the moment, there is no balance between those who produce but don't consume, and those who consume but don't produce.

These challenges require the development of new models. While each country must determine its own way of doing things at home, when it comes to these new problems we must think in the long term and take into account not only the immediate situation, but also that of future generations.

The international community must negotiate a global growth pact and avoid increased protectionism to guide business decision-making. The responsibility is not to look out on  the world in a short-sighted way, but to seek a systematic and collaborative way. Because even protectionism won't provide an insurance policy for survival or for re-imposing fear and silence.