M23 TZ2 [12] Why national governments introduce trade restrictions Flashcards
Intro 1
National governments often implement trade restrictions for various economic, political and social reasons.
These measures which include tariffs, quotas, and import bans, are designed to control the flow of goods and services across borders.
Intro 2
This essay will analyse three key reasons why governments may introduce trade restrictions including economic protectionism, national security concerns, and safeguarding public health and safety.
Tariffs and quotas
Point, evidence
A primary reason for introducing trade restrictions is to protect domestic industries from foreign competition.
Governments may use tariffs or quotas to make imported goods more expensive or limit their quantity.
For instance, in 2018, the United States imposed a tariff on steel and aluminium exports, primarily targeting China.
This was done to protect the American steel industry from cheaper foreign imports and maintain the competitiveness of U.S. manufacturers.
Tariffs and quotas
explanation
By making imported Steel more expensive, the U.S government aimed to encourage domestic consumption of American-made Steel products, supporting local industries and employment.
However, this could lead to retaliatory actions from other countries, potentially escalating into trade wars and disrupting global supply chains.
LIC like Vietnam and Bangladesh rely heavily on exports to the U.S. market (textile). Such tariff can hinder economic growth by limiting access to larger markets.
National security
Point, explanation
Another reason for implementing trade restrictions is to ensure national security.
Governments may limit imports or exports of certain goods and technologies to safeguard sensitive information.
An example of this is the restrictions imposed by the USA, Australia, and the UK, on Chinese telecommunications company Huawei.
These restrictions stem from concerns that Huawei’s products could be used for spying by the Chinese government, potentially compromising national security.
National security
explanation
By limiting Huawei’s access to their markets, these countries aim to protect their telecommunications networks and sensitive information from potential foreign interference.
This illustrates how trade restrictions can be used as a tool to address privacy concerns amidst an increasingly interconnected world.
LICs may face pressure regarding the use of foreign technology, they often prioritise economic partnerships and technological development over potential security risks. This emphases the importance of affordable technology
Public health and safety
Point, evidence
National governments may also introduce trade restrictions to address public health and safety
These measures are often implemented to ensure that imported products meet domestic standards and regulations.
An example of this is the European Union ban on hormone-treated beef from the United States since 1989.
This restriction is based on concerns about potential health risks associated with growth hormones used in U.S. beef production.
Public health and safety
Explanation
The trade dispute over this ban has led to significant tensions between the U.S. and the EU, with the U.S. challenging the ban in the World Trade Organization (WTO).
This ban allows the EU to protect consumer health and maintain its strict food safety standards.
This has been effective for LICs like Haiti who have banned imports from the U.S. for poultry due to concerns of avian influenza.
