Comment by ethbr1

Protectionism, like industry subsidies, is a double-edged sword.

- On the one hand, as SE Asia is intimately familiar with, it can create space to create globally competitive industries.

- On the other hand, it can also remove the incentive for local industries to invest and become technically competitive.

IMHO, what I'd like to see would be a stricter link between protection measures and R&D investment.

If an industry is protected, then it is required to prove it's improving itself + limit returns to shareholders.

E.g. steadily increasing CAFE fuel efficiency standards, requirements to demonstrate decreasing costs of production (lumber and/or steel), etc.

Too often, protection measures are implemented, the excess benefits are skimmed and go directly to shareholders, and the company doesn't increase its global competitiveness (e.g. US Steel).