Weaponized Interdependence

The New Age of Protectionism

Until recently, the European Commission was one of the strongest international voices backing the open trading system, but proposed export restrictions represent a sudden about-face for the bloc. These decisions have already begun to alter the once seemingly inexorable trajectory of globalization. With vaccine access and national security at stake, wealthy democratic governments have pushed liberal market principles aside in favor of aggressive restrictions aimed at meeting new internal political demands. Their self-interested behavior is fraying alliances and normalizing open state intervention in global markets to a degree not seen in recent memory. In the future, other countries may look to protect themselves in similar ways—defecting from global rules that they believe are rigged against them. For more, see here.