The Trade Weapon: How Weaponizing Trade Threatens Growth, Public Health and the Climate

Trade policy is being weaponized due to geostrategic rivalry and the war in Ukraine, but there are alternatives to the trade weapon. Diplomatic carrots, resilience in supply chains, multilateral WTO remedies, and direct action on environment and public health goals are needed to restrain the damaging subordination of trade policy to other ends. Governments must address the discontents of trade, adjust to technological change, and make the case for open markets to preserve three decades of income gains and deal effectively with the climate transition and the next pandemic.

Format: Unspecified
Length: 224 pages
Publication date: 24 November 2023
Publisher: John Wiley and Sons Ltd

COVID-19 and the climate transition have sparked a surge in the weaponization of trade policy, driven by geostrategic rivalry and the war in Ukraine. This trend towards protectionist measures and retaliatory actions is detrimental to economic growth and self-sabotaging. However, there is an alternative path forward. In his insightful book, Ken Heydon presents a range of alternatives to the trade weapon. He advocates for the use of diplomatic carrots alongside sanctions to encourage cooperation; for resilience in supply chains rather than relying on ill-advised reshoring and friend-shoring; for multilateral solutions to rule-breaking in the World Trade Organization (WTO) rather than unilateral penalties driven by national sovereignty; and for direct action on environment and public health goals rather than the blunt tool of trade restrictions.

To prevent the harmful subordination of trade policy to other objectives, governments must address the discontents of trade and improve their efforts in helping losers, adapting to technological change, and making the case for open markets. At stake are three decades of income gains from globalization and the ability to effectively address the climate transition and the next pandemic.

In conclusion, the weaponization of trade policy is a concerning trend that must be addressed through diplomatic measures, resilience in supply chains, multilateral solutions, and direct action on environment and public health goals. By adopting these alternatives, governments can foster economic growth, promote cooperation, and address the challenges of the 21st century.

Weight: 398g
Dimension: 144 x 223 x 24 (mm)
ISBN-13: 9781509557554