Lessons for the 21st Century’s Trade Wars: A Brief History of the Mercantilist Policies

Abstract

The Paper starts with an Introduction section, which proceeds with a section dedicated to Literature Review. The following section looks at the selected trade wars in a historical context. The rise of mercantilism, the role of colonies, imperialism, freer trade, protectionism, the impact of tariffs and other mercantilist, and its offshoot, neomercantilist, policies on relations between nations were briefly summarized with reference to selected examples. These examples included the Navigation Acts, the Boston Tea Party, the Opium Wars, the Cobden-Chevalier Commerce Treaty, the Méline Tariff, the American System, the Fordney-McCumber Tariff, the Smoot-Hawley Tariff Act, and the banana wars.  Examples were selected based on their historical significance and role in shaping international trade. Its focus is mainly on the mercantilist trade policies carried out by two hegemonic powers, ie Britain and the United States, which used these policies dexteriously when they were rising to their hegemonic positions during the period under investigation. The Paper ends with the Conclusion section, which draws attention to the possible lessons from these historical examples to the 21st century’s statesmen and policymakers for their intended trade wars.