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Is protectionism a necessary measure to protect local industries or a hindrance to free trade?

Ephram Margrem

As an expert in the field, I must concede that the issue of protectionism versus free trade is a complex one, and that there are valid arguments on both sides of the debate. On the one hand, protectionism can be seen as a necessary measure to protect local industries from unfair competition, particularly in sectors where the cost of production is higher than in other countries. By imposing tariffs or quotas on imports, governments can give domestic producers a level playing field, and enable them to compete on their own merits.

However, it should be noted that protectionism can also be seen as a hindrance to free trade, which has been shown to be a powerful driver of economic growth and development. By restricting imports, protectionism can lead to inefficiencies and higher prices, while reducing competition and limiting the choice available to consumers. Moreover, protectionism can also provoke retaliation from other countries, leading to a cycle of trade wars that ultimately harms everyone.

In my view, the key to resolving this debate lies in finding a balance between protectionism and free trade, and in recognising that both approaches have their strengths and weaknesses. One possible approach is to use protectionism selectively, targeting those industries that are genuinely in need of support, while allowing others to compete freely. This can be achieved through careful planning and co-ordination between government and industry, in order to identify the sectors that are most vulnerable and to design measures that are effective and proportionate.

Another possible approach is to use free trade as a means of promoting development, particularly in those countries that are currently struggling with poverty and underdevelopment. By opening up their markets and investing in infrastructure, these countries can attract foreign investment and stimulate economic growth, while also benefiting from the knowledge and experience of more advanced economies. This approach requires a long-term perspective and a willingness to take risks, but it has the potential to deliver significant benefits for all involved.

In conclusion, the question of whether protectionism is a necessary measure to protect local industries or a hindrance to free trade is a complex one, and there are no easy answers. However, by finding a balance between these two approaches, and by recognising the strengths and weaknesses of each, we can create a more equitable and sustainable global trading system that benefits everyone.