Infant-industry protection argument

The argument requires more than observing that an industry is new. Assess the claimed learning benefits, financing or coordination problem, likely future competitiveness and the costs imposed on consumers, taxpayers and other producers. Support can create dependence, lobbying and inefficient resource use if it lacks credible conditions and an exit. The economic argument is separate from whether a particular subsidy, tariff or quota is lawful under current commitments. It does not prove every start-up should receive protection or that all protected firms will eventually compete successfully.