Beyond trade wars and economic nationalism : towards a cooperative global governance

Industrial policy has returned to the centre of global economic debate. Once dismissed as inefficient, government intervention is now seen as vital for addressing climate change, technological competition and supply chain vulnerabilities. Yet the rise in uncoordinated national strategies risks fuelling new trade conflicts and economic fragmentation. This article argues for a cooperative global framework that allows legitimate industrial policies while limiting harmful protectionism. It identifies three main policy areas - national security, industrial development and coordination for the net-zero transition - and discusses potential principles for transparent, time-limited and performance-based support. Establishing such rules could help reconcile national ambitions with international cooperation and preserve open markets wherever they are efficient.