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Explaining the Resilience of Free Trade The ‘Smoot Hawley’.pdf
Explaining the Resilience of Free Trade: The ‘Smoot-Hawley’ Myth and the Crisis
Gabriel Siles-Brügge
Department of Social Sciences
Oxford Brookes University
Gipsy Lane
Oxford, OX3 0BP
UK
gsiles-brugge@brookes.ac.uk
Paper presented at the Inaugural Sheffield Political Economy Research Institute
Conference, 16-18 July 2012.
Work in progress. Comments welcome!
Abstract
Despite the onset of the current economic crisis there has been no significant move
towards protectionism amongst the world’s economies. Conventional, rational
institutionalist explanations would stress the role played by the constraining rules of the
World Trade Organisation, which prevent countries from reneging on their liberalisation
commitments without being subject to a powerful dispute settlement mechanism. In this
paper, I show that such explanations do not tell the full story as countries have remained
open in areas where they have not bound their liberalisation. Instead, I develop a
constructivist argument which emphasises how particular ideas about the global trading
system have become rooted in policymaking discourse. Trade policymakers have
contributed to constructing an ideational imperative for continued openness (and even
for concluding the Doha Round) by drawing on a particular reading of economic history
(what I refer to as the Smoot-Hawley myth); by continually stressing protectionism’s
role as one of the causes of the Great Depression non-liberal responses to the current
crisis have been all but rul
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