Protectionist tendencies in the North and vulnerable economies in the South

This chapter examines whether protectionist tendencies, in terms of both policy preferences and policy actions, in ‘northern’ countries – looking in particular at the US – seem to be an obstacle to the integration into the world economy of vulnerable ‘southern’ countries. The chapter makes three related points. First, current trade barriers in the North appear to cost southern countries billions of dollars annually. Second, although some trade barriers in the North are declining under the guidance of the World Trade Organization (WTO), it appears that there is an increasing US resistance to further globalization via trade, investment and immigration liberalization. Third, the chapter speculates about what forces might be driving this rising northern resistance to further liberalization, and what this resistance may imply for the integration prospects of small, vulnerable economies.