The recent establishment of large mega-free trade agreements has led to the potential for the rapid economic development of nations through the inclusion of provisions that lower tariff rates on goods crossing borders. Some countries, such as India, have shied away from these agreements in favor of protectionist strategies, which has led to inconsistencies in treaty negotiations and economic decline. India used protectionist strategies as part of its domestic plan, which has led it to withdraw from free trade agreements and weakened its regional partnerships. This comment examines the Foreign Direct Investment flowing into India before and after its withdrawal in an effort to determine if a country’s reliance on protectionism in a rapidly expanding world of free trade harms its economic development. It finds that after the breakdown of negotiations with India, many of India’s prominent trading partners scaled back their investments in the country, thus ultimately harming India’s policy objectives in relation to foreign trade. To rectify this harm, this comment proposes that India abandon its protectionist strategies and petition for membership in one of two regional trading organizations.
Dangers of Protectionism in Free Trade,
32 Wash. Int’l L.J.
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