closed regionalism

Closed regionalism refers to institutional arrangements that facilitate trade and economic policy coordination among countries within a specific geographic region, but with a key characteristic: they impose protectionist measures to limit market access for non-member states. This approach contrasts with open regionalism, which does not discriminate against non-members. Historically, the period between World War I and World War II saw competing economic blocs pursuing mercantilist policies, which is a classic example of closed regionalism and could lead to economic or even military conflict. The trend since the end of the Cold War has largely favored open regionalism, aiming to promote global trade liberalization rather than creating exclusionary blocs.12