In view of trade surpluses, the federal government has levied a duty on wheat and sugar imports to protect farmers and sugar millers. Such temporary measures may be called for in times of stress originating from both domestic and international surpluses, or from market volatility.
However, these ‘relief measures’ should serve as a breather without slackening national efforts to improve productivity and quality and making goods and services globally competitive price-wise. Quite often, this does not happen, perpetuating inefficiencies in the economy by the permanent embedding of subsidies and protectionist measures taken from time to time.
It can be argued that selective and temporary protectionism has picked up worldwide after the global financial turmoil of 2007-8 and the Great Recession that followed it. This has provided more sovereign space for national economic decision-making, as countries are focused on tackling domestic issues with shrinking global trade and business opportunities. Many states also tend to develop free trade within national frontiers, with restrictive international trade practices.
However, protectionism breeds inefficiencies and often leads to rent-seeking and predatory practices, which are now visible on a global scale.
