4.3 Arguments for and against trade control/protection

• Arguments include infant industries, national security, health and safety, environmental standards, anti-dumping, and unfair competition

• Further arguments include balance of payments correction, government revenue, job protection, and ELDC diversification

• Arguments include misallocation of resources, retaliation, increased costs, higher prices, and less choice

• Trade protection can reduce efficiency incentives and export competitiveness

• Free trade and protection should be evaluated using efficiency, equity, stakeholders, and long-run effects

• Policy judgments depend on context and objectives