Arguments against Policy of Protection



In general the arguments made in support of free trade are the same as arguments made against protection but few special arguments can be mentioned here


  1. Burden on the consumer


If a country restricts imports with the help of tariff or non tariff barriers the prices of the commodity rise and the consumers are put to a loss.


  1. Misuse of protection


It is expected that the protected industry will spend on research, reduce the cost of production, improve the quality of the commodity and be able to compete in the world market without protection in due time. But it is possible that some industries may never try to develop if they become sure of protection for a long time.


  1. Possibility of retaliation


If country A restricts the import of goods from country B, country B may pay it back in the same coin. This will result into contraction of global trade with loss of advantages of trade.




In general the policy of free trade is beneficial to all countries but it should be followed honestly by all countries under the supervision of some impartial agency. The WTO is expected to play that role.


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