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As its corollary, protectionism is regarded as a zero or negative sum game that should play no part in world affairs, a view strongly supported by the World Trade Organisation. Nevertheless, protectionist trade policies are still adopted in both highly developed countries like the USA and in developing countries like India. This phenomenon hints that there could be justification for protectionist trade policies, a view that is echoed by Corden's (1974) declaration that "theory does not say that trade is best ? it says that trade is best under certain conditions". However, this essay will argue that while free trade may not be ideal, adopting protectionist trade policies can lead to more problems especially when interventionism goes astray...
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