NEO-PROTECTIONISM AND TRADE WARS

Abstract

Background. Ukraine is integrating closer into international economic processes and at this stage it is important to work out a mechanism of relationship formation ratio between freedom of trade and protectionism, which would smooth the effects of the global market slump and use maximally the benefits that can be obtained abroad. The aim of the article is to reveal the problems of neo-protectionism in the modern period of global economic development and the related deployment of trade wars between the count­ries of the world with the analysis of their consequences for the global economies and Ukraine. Materialsandmethods. The information base of the study is the publications of do­mestic and foreign scholars on the protectionism problems and certain trade wars mani­festations in trade policy; official data of the statistical office of the USA, the WTO and other international organizations. Methods of systematization, analysis and synthesis, graphic, tabular, etc. have been used in the research. Results. In the arsenal of trade and political struggle of countries, along with trade­tional forms of import restrictions, there are effective measures of foreign trade regulation such as administrative, financial, credit, technical, etc., which are gaining strength and greatly complicate free movement of goods across borders. Analysis and identification of modern protection forms of national markets have shown that the expansion of protectionist forms and methods is carried out as the result of the application of non-tariff trade restrictions, which are particularly active in developed industrialized countries, including the USA, although they are demonstrative free trade supporters. The consequences of the confrontation of "big" economies are manifested in the form of "trade wars". Their escalation can significantly influence the world economy and trade and negatively affect the economies of developing countries. Conclusion. The development of international trade can be characterized as a combi­nation of neo-free trade and neo-protectionism at the present stage. It has been established that neo-protectionist measures can give impulse to the development of national production and stimulate domestic demand for developing countries, although a significant number of such measures may create significant risks in long-term perspective. The results of the confrontation between the "big"economies are revealed in the form of "trade wars", which intensification can significantly affect the world economy and trade and negatively influence the economies of developing countries. Neo-protectionism measures which can be useful for Ukraine’s economy development in modern conditions are offered. Keywords: protectionism, neo-protectionism,international economic policy, "trade war", foreign trade, tariffs, non-tariff measures.