European Protectionism in Theory and Practice

In the 1970s, discussion of the international economy frequently turned to the emergence of a “new protectionism” among the industrial countries after the accomplishments of trade liberalization in the 1960s. International organizations such as the General Agreement on Tariffs and Trade (GATT) and the International Monetary Fund (I.M.F.) documented an increase in trade barriers erected against imports of manufactures. The protectionism was “new” in two respects: (1) it was directed against dynamic exporters of manufactured goods (especially Japan and the newly industrializing countries) that had recently become important elements in world trade; (2) the means of protection were nontariff barriers —quotas, voluntary export restraints, and a host of governmental impediments to competitive trading practices.1