As The Atlantic reported earlier this month, the latest import to nearly fall victim to a trade war was Roquefort cheese. In January, the Bush administration “imposed a 300 percent import tax on France’s famous Roquefort cheese, among other luxury food imports from Europe.” This move was a tit-for-tat retaliation for the EU’s ban on US beef containing hormones. Apparently in recent weeks, foodies around the nation were savoring their last servings of Roquefort (as the article describes in strenuous detail that’ll make any reader hungry).

Luckily however, cooler heads prevailed and the EU and US settled their dispute before the threatened tariffs took effect.

I know this seems like a rather small example of retaliatory protectionist policies. But the script is largely the same whether you are talking about commodities or culinary delights. In fact, the WTO has reported a jump in protectionist policies in recent months, likely as a result of the recession and weak job market’s on politicians’ home soil, which has long been a launching pad for tariffs and trade wars.

In the current issue of SupplyWatch, several of my category management colleagues discussed how protectionism is impacting their particular categories. A few of the highlights include:

• Metals - Mike Petro sheds light on the Buy American clause and its potential impacts on production levels in the US and abroad, as well as the ramifications for buyers. As Mike duly notes, many American producers may face new tariffs as retaliation for the Buy American provisions.
• Transportation - Rachel Rutkoski updates readers on the US/Mexico trucking program, a dispute that has been in place since NAFTA passed in 1994.
• Packaging - Haiying Xie differentiates between protectionism and the system of economic zones in China, which she says are set up to help Chinese companies gain access to international markets.

If any of these categories directly or indirectly impact your supply chain or cost drivers, you can find more information in the full SupplyWatch article here. As was the case with cheese, these regulations and the ensuing battles often fly under the radar of the media. So keeping abreast of trade decisions, regluations and tariffs enacted by your own government and those where your key suppliers reside is absolutely critical in the current environment.

Justin Fogarty is Managing Editor of Supply Excellence. For any questions or feedback on the blog or its contributors, Justin can be reached at jfogarty[at]ariba.com.