TRADE: The New Protectionism

The French steel industry has declared that it faces a "manifest crisis," demanding, so far unsuccessfully, that the Common Market permit controls on imports of steel from outside the nine-nation Community. The Canadian and Australian governments have already posted restrictions on textile imports. Last week the British automobile industry, with protectionist action clearly in mind, formally asked the European Economic Community to investigate charges that Japanese cars are being "dumped" in Britain. In the U.S., the United Automobile Workers union is trying to document a suspicion that Volkswagen Rabbits are being dumped in America.

As these rumblings indicate, protectionist sentiment is...