Protektion passé?

The question of the state and the evolution of protectionism often gets a simplified answer: The main view is that the GATT Rounds have been achieving a continuous reduction. This view is partly revised based on four propositions: (1) Protectionism is an integral part of the international division of labour. (2) The international division of labour has been steadily growing, but so did the protection of the national value added, too. (3) The analyses of the GATT Rounds neglect the essential protective effects of exchange controls and exchange rate misalignments. (4) The extension of the GATT principles to the trade in services (GATS) and intellectual property rights (TRIPS) will cause and increase (new) protectionist measures, because the demand for protection is steady and flexible. Two proposals are offered to contain a rising demand for protection and to strengthen the GATT principles. First, a proposal for an endogenous barrier to this demand. Second, a concept of how the countries of the Triad (EU, Japan, USA) may reduce their trade conflicts and thereby help strengthening the GATT rules.