ABSTRACT
This chapter describes the rationales as well as instruments of protectionism, institutional theories and the forms of governance created to prevent trade policy from returning to the protectionism of the 1930s. Institutional theory offers a theoretical rationale for explaining how trade conflicts may be reduced since institutions enable interactions to be structured in ways such that behavior may be more predictable. Much of trade governance has occurred at the continental regional scale, but the World Trade Organization (WTO) represents the most ambitious governing mechanism for ensuring global free trade. The WTO has led to a more efficient system of handling trade conflicts. International trade is increasingly a governed process. Tariffs are the most common form of barriers to trade. Trade relations were not so complicated given the small membership size, and most of the negotiations focused on merchandise trade and tariffs.
