Learn more: LPF, OSA, BA – what does it all mean?
Everything we do at ICC aims to promote international trade and investment as vehicles for inclusive growth and prosperity. Over the years several phrases have been used to explain certain traits of trade policy. Some of these are mentioned by the speakers in the video above. But what do they mean and – the key question – are they as free trade-oriented as the users want them to sound?
Level Playing Field
Free trade level: High
”Trade on mutual terms, where every company plays by the same rules, regardless of where they come from or where they conduct business.”
In short: the guiding light for free trade. When all actors follow the same set of rules, it leads to open and fair competition which in turn drives innovation.
Open Strategic Autonomy
Free trade level: Medium to low
”The narrative of the EU’s new trade policy entailing a vision of more independent and firm action internationally to promote EU’s interests.”
A relatively new concept, launched by the European Commission during the consultation process that preceded the EU’s new trade strategy. While the word ”open” is meant to entail continued openness for trade and investments, many have been worried about the rest of the phrase and whether it indicates a more protectionist stance.
Buy American
Free trade level: Very low
”American law from 1933 with demands on American institutions to ensure public procurement of domestic products. One of the first decisions from the Biden administration was to strengthen this law.”
Protectionism
Free trade level: Non-existent
Protectionism refers to policies that restrict international trade, usually with the belief that it will improve economic activity domestically. Protectionism can take different forms, from explicit bans on import and export to more implicit forms of bureaucratic headaches such as demanding that data is located within a certain market, etc.
