Sharing my letter, published @FT in response to the ever-generous @SoumayaKeynes (go read her new book!) op-ed last week on why Europe needs tariffs.
My bottom line: Why and how go hand in hand. Tariffs are not credible commitments, but rules are.ft.com/content/2e26c449-7479…
ICYMI, I took a chance to reply to advocacy for EU tariffs that explicitly justify their policy proposals on the view trade rules won’t save the EU. Saving the EU is more complicated than raising tariffs but the rules don’t block they open consultations. open.substack.com/pub/monapa…
Amidst calls for the EU to invent new, unilateral forms of trade defence, I keep thinking about Alan Beattie's sharp FT essay this week on political will. In a nutshell, the EU already has smart, technocratic means it could use, not to mention multilateral paths for joint action.
In a world of MNCs this would seem to take us back to global considerations where partners matter -- and where trade defences work if coordinated. But not all governments are going to agree on the HOW protections happen or the WHO they protect.
Long been concerned of weaponry as a metaphor that exacerbates problems. What is the threshold distinguishing restrictions to advance economic growth? Is it intent to destroy others economy? Is it monopolisation? An intent to destroy; and end to yours for the success of mine.
This isn’t to subtweet anyone. I just wish we were far more careful about the grammar of war. Not to gloss over aggression but to better study it and dissect historical examples properly and situate the power (or lack) of non state actors in these dynamics.
WTO news: In 1 sentence, we know that India will likely have a chance to revisit its defences in the India-Solar Cells and Solar Modules dispute, concerning India's need to develop domestic resilience measures to improve India's domestic capacity for solar cells and modules.
I can foresee China's counterargument: protectionism undermines the benefits of renewables as a global public good. So it will be a fascinating dispute to follow if it makes its way through.
Ultimately, this invites Members to consider the scope of "healthy" development, such as in the event of monopolisation of supply. How could questions of anti-competitiveness give shape? What happens if resilience and economic security clash?