Infant industry argument

The logic underpinning the argument is that trade protectionism is costly in the short run but leads to long-term benefits.

[8] A study[9] of French cotton producers during the Napoleonic Wars found that regions which were protected from international trade with Britain due to blockades of British shipping, experienced greater growth in mechanized cotton output than regions which continued to have close trade with Britain.

Canada developed its infant industries, while facilitating the settlement of the Canadian West through immigration and railway construction under the National Policy (1879–1950s) following an earlier experiment in free trade with the United States.

[10][11] In Latin America, many countries have implemented economic policies which establish high tariffs and other barriers to international trade,[12] such as Brazil.

[13] Many Latin American economists have contributed to the development of theories related to economic nationalism, which in turn promotes the protection of infant industries.