US Limits Monthly Imports of Canadian Aluminum to 70,000 Tons... 'Protectionism' Spreads Worldwide

Threatened Multilateral Trade Amid Deepening US-China Trade Dispute
UK Emphasizes 'British First' with Internal Market Act
Thailand Imposes 35% Tariff on Chinese Steel

[Asia Economy Reporter Hyunwoo Lee] Economic recession and the weakening of the World Trade Organization (WTO) are once again driving the world toward protectionism. Recently, not only some advanced countries like the United States but also emerging countries have joined in raising trade barriers by strengthening anti-dumping tariff measures. Experts predict that the protectionist trend will intensify further, as the fundamental cause?hegemonic competition between the U.S. and China?is unlikely to ease.

The U.S. protectionist stance has become more conspicuous recently. According to The Washington Post (WP), on the 16th (local time), the Trump administration announced it would implement a quota system limiting monthly aluminum imports from Canada to 70,000 tons, while reducing tariffs by 10%. This came after the WTO ruled the U.S. tariffs on China violated international regulations, and the U.S. harshly criticized the WTO, saying, "The WTO has allowed China to do whatever it wants," further fueling protectionism.

CNBC analyzed that this measure was in response to the Canadian government's declaration to impose tariffs on U.S. electronics worth approximately $3.6 billion as retaliation against U.S. aluminum tariffs. The Canadian government is opposing the quota, stating it was a unilateral announcement not negotiated with Canada.

The U.S. also recently decided to implement a quota system from 2028, limiting uranium imports from Russia to no more than 15% of the domestic uranium market, citing national security. The U.S. is not alone in advocating protectionism. The United Kingdom is pushing forward with the establishment of the 'Internal Market Act,' which requires the Northern Ireland region?under the Brexit agreement with the European Union (EU)?to follow UK customs law instead of the EU's tariff provisions. This is also interpreted as a form of protectionism. Some foreign media use the term 'British First.' UK Prime Minister Boris Johnson insists it is "to protect the integrity of the United Kingdom," regardless of criticism.

Protectionism is spreading to emerging countries as well. Hong Kong's South China Morning Post (SCMP) reported that the Thai government began imposing a 35.67% anti-dumping tariff on Chinese steel products starting last month. The Indian government has also strengthened import restrictions on TVs and tires since the end of last month. SCMP noted that it is unusual for emerging countries, where exports are crucial for economic growth, to implement protectionist measures.

The intensification of protectionist measures worldwide, combined with the COVID-19 pandemic, has led to a decrease in international trade volume compared to last year. According to WTO statistics, international trade volume in the second quarter of this year fell by 18.5% compared to the same period last year. Although trade volume had been gradually increasing since 2016, it began to decline again from 2018 due to the escalation of the U.S.-China trade dispute. According to statistics from the United Nations Conference on Trade and Development (UNCTAD), global trade volume last year was $18.8887 trillion, a 2.97% decrease from the previous year.

The protectionist trend is expected to continue even after the U.S. presidential election in November. Trade will only gain favorable winds if U.S.-China tensions ease, but both the Republican and Democratic parties maintain a tough stance on China. On the same day, President Trump said, "We also need to take some action against the WTO," sparking speculation that the U.S. might withdraw from the WTO. Jin-gyo Seo, senior researcher at the Korea Institute for International Economic Policy, said, "President Trump prefers one-on-one sanctions against China without coordinating with allies and resolving issues through top-down leadership, while the Democratic Party, if in power, may strengthen alliances with allies and further intensify the blockade against China."

This content was produced with the assistance of AI translation services.