Taxonomy of Trade Barriers: Five Types of Protectionism

Abstract

This paper examines the different motives for introducing trade barriers and identifies five types of protectionism. While the 20th century was dominated by “lobbyist protectionism” and “industrialiser protectionism,” the period following the global financial crisis of 2008–2009 has been a time of “geostrategist protectionism” and “populist protectionism.” Finally, the introduction of a carbon border adjustment mechanism in the EU could be the beginning of the spread of “benevolent protectionism.” The proposed taxonomy of protectionism shows why, despite the consensus among economists on the benefits of international trade, protectionism remains so prevalent. It also helps to explain why developed countries, once the main proponents of free trade and globalization, played a major role in the intense growth of trade barriers in the 2010–2020s.