Intentional And Unintentional Trade Barriers: Two Examples

Trade barriers between countries is very common in today's world. Barriers, intentionally or unintentionally change the dynamics of trade in a significant way. Some countries do it intentionally and create trade barriers by increasing tariff rates or fluctuating currency exchange rates. The main purpose of the intentional trade barriers is to protect local industries in the country,  control and balance the import-export relationship. The major example of these type of intentional trade barrier is President Obama's Stimulus Plan in 2009. The neo-keynesian plan tried to boost the American economy by saying '' Buy American Provision ''. The success of the stimulus plan is debatable. However, its is certain the plan aimed to create a trade barrier for exporting countries. From comparative advantage perspective, the plan could be considered as disaster. The plan tried to boost local industries in US which do not have any comparative advantage. The neo-keynesian plan was against the dynamics of  free-market economy, damaged the US economy and led USA to lose it comparative advantage.

On the other hand, unintentional trade barriers, occur due to political and socio-economical reasons. An action of a country create problem for other countries and this issue might lead to unintentional trade barriers. Various examples might be given to describe the situation of unintentional trade barriers. One of the examples about the situation is the tension between France and Turkey  in 2011. In 2011, France’s Parliament passed a bill that would criminalize the denial of ''so-called Armenian genocide ''. Turkey warned France about the possible economic and  political results of the law. French parliament passed the bill and it caused serious damage to economic and trade ties. French products were boycotted in Turkey. The government did not sponsor an official boycott because Turkey is a member of European Customs Union, the boycott has been done by society. The impact of the law caused a major trade barrier between two countries. Unintentional trade barrier was occurred as a result of  an action of French Parliament. This unintentional trade barriers highly affected the French export and products.

* Translation: We are not selling french products after 12 / 22 / 2011.