While a rules-based trading system is designed to be inclusive and promote global trade, growing protectionism threatens to undermine this system. On one hand, in order for these two concepts to co-exist, it is important that countries adhere to the rules of the trading system and avoid implementing protectionist policies. Such policies can have a negative impact on global trade and economic growth, and can ultimately lead to retaliatory actions by other countries. It is also possible for a rules-based trading system and growing protectionism to coexist by using different definitions of what constitutes free trade. The rules-based trading system can focus on the removal of tariffs and other barriers to trade, while protectionism can focus on the use of subsidies and other measures to support domestic industries. This will allow countries to participate in the global economy while also protecting their own interests. And finally and interestingly enough is the question if any type of collaboration is possible among pure protectionist countries. And the answer is YES.
- Protectionist countries can collaborate in international trade by forming their own trade bloc. This would allow them to negotiate better trade deals with other countries and reduce the impact of international isolation even though limiting their exports to each other.
- They can jointly develop export by sharing best practices and developing joint export strategies. Such an approach will help them to penetrate foreign markets and increase their market share.
- By sharing information about sourcing requirements and establishing a common procurement process they can keep importing necessary goods and services while maintaining their purchasing power. This strategy will serve them to ensure that they get the best deals on goods and services.
- Protectionist countries can attract foreign investment together by sharing information about investment opportunities and co-investing in new businesses. As such, they will keep creating new jobs and stimulating economic growth.
- In order to boost their technological development and maintain their technological edge, protectionist countries can collaborate by sharing information about research and development initiatives and collaborating on joint projects.