Tariffs and New Protectionism

All the discussion and awareness around tariffs and trade at the moment reminded me of the work that Colin Hines did on a New Protectionism – protectionism for the benefit of communities and the environment. He saw this as one of the only ways to implement people- and planet-friendly policies in a globalised economy. Below is a review of the book and core ideas. In terms of implementation, John Bunzl’s simultaneous policy is an interesting strategy. I’ll summarise that below too.

So with tariffs no longer taboo, is this a conversation worth having? Could you imagine this working in practice?

The New Protectionism

The New Protectionism: Protecting the Future Against Free Trade by Colin Hines (2000) argues for a shift away from globalized free trade towards what he calls “progressive protectionism.” Here’s a summary of the main ideas:

Core Argument

Hines contends that free trade has led to:

• The erosion of local economies
• Environmental degradation
• Job insecurity
• A weakening of democratic control

He proposes replacing global economic integration with a system that prioritises local economies, reduces dependency on international trade, and protects communities and ecosystems.

Key Concepts

1. Progressive Protectionism
   • Unlike old-style protectionism, which was nationalist and inward-looking, Hines’ version is internationalist, aiming to give every country the right to protect its own economy and environment without harming others.
   • It emphasizes local production for local consumption wherever practical.
2. Re-localisation
   • Encourages re-localizing economies to increase resilience, support local jobs, and strengthen communities.
   • Trade would still exist, but not dominate economic policy or override social/environmental goals.
3. Democratic Control
   • Argues for restoring democratic oversight of economic policies, which free trade agreements and institutions like the WTO have undermined.
4. Environmental Sustainability
   • Proposes that reducing long-distance trade and overconsumption will help mitigate climate change and environmental damage.
5. Policy Recommendations
   • Use tariffs and regulations to support local industries
   • Reform international trade rules to prioritise sustainability and social justice
   • Encourage financial systems that invest in local economies

Tone and Intent

The book is a critique of neoliberal globalisation and a call to action for activists, policymakers, and citizens to rethink economic priorities. It blends economic analysis with environmental and ethical concerns, aiming to lay the groundwork for a more equitable and ecologically responsible global system.

---

Simultaneous Policy

John Bunzl’s Simultaneous Policy (or Simpol) is a political and economic concept aimed at addressing global problems that individual nations can’t solve alone—like climate change, tax avoidance, or wealth inequality—due to global competition.

The Core Problem: Destructive Global Competition

Bunzl argues that governments are trapped in a race to the bottom. Because businesses and capital can easily move between countries, governments hesitate to implement socially or environmentally beneficial policies (like higher corporate taxes or stricter environmental laws) for fear of driving away investment.

The Simultaneous Policy Solution (Simpol)

Simpol proposes that countries implement major global reforms at the same time, removing the competitive disadvantage. This eliminates the fear that a country acting alone will be punished economically.

How It Works

1. Citizens sign the Simpol Pledge, committing to vote in future elections for any candidate who supports Simpol—or at least agrees to implement Simpol policies when all or most other governments do.
2. Candidates and parties adopt Simpol, knowing that it brings voter support without forcing unilateral action.
3. Governments negotiate and agree on detailed global policies, which are implemented simultaneously once a sufficient number of nations commit.

Global Cooperation Without Global Government

A key strength of Simpol is that it doesn’t require creating a world government. Instead, it uses coordinated national action to achieve effective global governance.

Underlying Philosophy

Bunzl integrates systems thinking and psychology, emphasizing that lasting change requires cooperation over competition—and that citizens must push politicians to overcome fear-based inertia.

Policy Examples

Here are some concrete examples of the kinds of global policies that Simpol might include—ones that no country dares implement alone, but could work if adopted simultaneously:

Environmental Policies

• Global Carbon Tax: A uniform tax on carbon emissions applied across all participating countries, preventing industries from relocating to “pollution havens.”
• Ban on Fossil Fuel Subsidies: Phasing out subsidies worldwide to speed up the transition to clean energy.
• Binding Emissions Reduction Targets: Agreed-upon targets that are enforced and monitored globally.

Economic and Financial Policies

• Minimum Corporate Tax Rates: A global floor to prevent multinationals from shifting profits to low-tax jurisdictions (similar to the OECD’s efforts, but more enforceable under Simpol).
• Financial Transaction Tax: A small tax on international financial trades to curb speculation and generate revenue for global public goods.
• Global Wealth Registry: A transparent system to track wealth and assets held offshore, making tax avoidance more difficult.

Social and Labour Policies

• Global Minimum Wage Standards: Adjusted by country based on cost of living, to prevent a “race to the bottom” in labor rights.
• Universal Basic Services: Coordinated efforts to provide basic health, education, and social protection across all nations.

Regulatory and Governance Policies

• Ban on Tax Havens: Coordinated shutdown of secrecy jurisdictions that shelter illicit finance.
• Global Anti-Corruption Measures: Shared standards and enforcement mechanisms to fight kleptocracy and corporate corruption.

Funding Mechanisms for Global Goods

• Climate Adaptation Fund: Financed through coordinated taxes or levies, to help poorer nations adapt to climate change.
• Technology Sharing Agreements: Especially for green energy, medicine, or AI, ensuring benefits are distributed more equitably.

Bunzl emphasizes that the actual policy content would be decided democratically by the citizens of Simpol-supporting countries, once enough governments commit to implementing them simultaneously.