Weaponisation of trade
Topic: International Trade Policy, WTO and Intellectual Property · NCERT: Beyond NCERT
Meaning
Weaponisation of trade is when a country uses trade as a tool of geopolitical pressure. The tools include trade dependencies (other countries relying on its goods or market), tariffs, export bans, and control over key supplies. It turns economic links into leverage. The main forms are economic coercion, sanctions, export controls and tariff threats. This is why "economic security" and diversified supply chains now matter so much in trade policy.
Example
China brought in export controls on gallium and germanium (2023), graphite (2023), and rare earths and magnets (2023–25). These are critical minerals that other countries depend on China for. In response, the EU's Anti-Coercion Instrument came into force in December 2023, so that the EU can take counter-measures against such pressure.
Don't confuse with
- Protectionism: this shields domestic industry from foreign competition for economic reasons. Weaponisation uses trade to force another country to change its policy.
Related concepts
- Economic coercion
- Economic sanctions
- Secondary sanctions
- Export controls
- Dual-use goods
- Technology denial
- Security exception
- Trade war
- Retaliatory tariff
- Reciprocal tariff