Phase IFoundation
Background
Overview
Understanding trade protectionism is crucial for analyzing global economic trends, international trade relations, and their impact on India's economy, including its export competitiveness, import bills, and foreign policy. It's a recurring theme in international trade negotiations and disputes.
Trade protectionism refers to government policies that restrict international trade to help domestic industries. Tariffs, or import duties, are a primary instrument of protectionism, imposing a tax on imported goods and services to make them more expensive and less competitive than domestically produced goods.