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Chinese policy makers create barriers during trade and the US retaliates with their own just like how it was emphasized in this week's reading. One of he negatives of protectionism can destroy trading relations because countries might enact their own barriers. This practice is usually looked down upon by the WTO but the US had asked for an exception. Americans say this is because Beijing identifies as a nonmarket economy but in fact just because their policy makers make decisions based on production and consumer demand doesn't necessarily mean they are nonmarket. China being influenced by the WTO gives them an unfair advantage and can have a negative impact on US trade and investment in China.

The biggest trade deal in decades was struck on Monday. The Trans-Pacific Partnership (TPP) cuts trade tariffs and sets common standards in trade for 12 Pacific rim countries, including the US and Japan. It marks the end of five years of often bitter and tense negotiations.

This article discusses the sugar market in the U.S. On average, U.S. consumers pay twice as much for refined sugar as the rest of the world. This is largely due to sugar policies in the United States. In America, the federal government offers loans to sugar cane and beet processors who are to pay sugar growers a minimum price set by the USDA. The idea is that processors will obtain a market price for their sugar that is sufficient to pay back the loans. However, the loans are "non-recourse," meaning that if the market price of sugar declines, processors can forfeit to the USDA the sugar they put up as collateral. In order to prevent sugar processors from offloading sugar onto the USDA and to protect processors from lower-cost foreign competition, the federal government has imposed a two tier system of tariff rate quotas. It also restricts the total amount of sugar that domestic processors can sell by setting market allotments which are designed to drive up the price by creating artificial scarcity.

Sri Lanka's export economy suffers in Europe, so economists look for opportunities elsewhere. The largest economy near Sri Lanka is India, but trade with India has been traditionally blocked by protectionist policies. This article discusses the potential gains for Sri Lanka should it choose to do away with protectionist policies.