Free trade and protectionism in the current global economy

While the theoretical benefits of free trade for economic growth and consumer welfare are well-established, the global trading system remains persistently characterized by protectionist measures. The study begins by establishing the theoretical foundations of free trade and the categorization of protectionist barriers used to inhibit market competition. It then evaluates the role of the World Trade Organization (WTO), analyzing its evolution from the GATT and its ongoing challenges in managing trade disputes between nations. A concrete case scenario is evaluated with the Trump administration's trade policies. By examining their motivations and multifaceted outcomes, this analysis demonstrates how modern protectionism tests the limits of the multilateral system and reveals the intricate interplay between economic policy and political strategy.