Main Article Content
Aim: This study reassesses the nature of international trade costs by examining both conventional barriers (e.g., tariffs, transportation costs) and unconventional ones (e.g., cultural, institutional, and conflict-related frictions). Special attention is given to conceptualizing interstate soft conflicts – non-violent, informal tensions between countries that can disrupt trade without relying on formal sanctions or militarized force. It revisits the author’s previously introduced concept of “interstate soft conflict” within a broader framework of trade resistance and informal economic pressures. Methods: A qualitative case study approach was used to identify 20 instances of interstate soft conflict between 2000 and 2020. Cases were gathered through systematic keyword searches across media and public sources and categorized based on the type of conflict (direct or indirect), the actors involved (state, organization, or individual), and the nature of the actions taken (e.g., boycotts, protests, diplomatic retaliation). Results: The analysis reveals that interstate soft conflicts, though informal and non-institutional, can act as de facto trade barriers. They emerge from political, ethical, and cultural disputes and often lead to reputational damage, reduced trade engagement, and shifts in consumer behavior. These conflicts operate across multiple channels – state-led, organization-led, and consumer-led – and reflect broader geopolitical and ideological divides. Conclusions: In an era where formal trade barriers are declining, informal tensions are becoming a more significant source of trade friction. Recognizing interstate soft conflicts as part of the trade cost landscape is essential for understanding contemporary trade patterns and for designing policies that are resilient to both institutional and informal disruptions
Article Details
Alesina, A., Dollar, D. (2000). Who gives foreign aid to whom and why? Journal of Economic Growth, 5(1), 33–63. https://doi.org/10.1023/A:1009874203400 (Crossref)
Anderson, J.E., Marcouiller, D. (2002). Insecurity and the pattern of trade: An empirical investigation. Review of Economics and Statistics, 84(2), 342–352. (Crossref)
Anderson, J.E., Wincoop, E. van (2004). Trade costs. Journal of Economic Literature, 42(3), 691–751. https://doi.org/10.1257/0022051042177649 (Crossref)
Arguelles, M. S. (2012). Albay gov renews call for boycott of China products. Retrieved from https://globalnation.inquirer.net/37179/albay-gov-renews-call-for-boycottof-china-products [accessed: 21.01.2018].
Arvis, J-F., Duval, Y., Shepherd, B., Utoktham, C. (2013). Trade costs in the developing world: 1995–2010. Policy Research Working Paper 6309. The World Bank, Washington, DC.
Ashenfelter, O., Ciccarella, S., Shatz, H.J. (2007). French wine and the US boycott of 2003: Does politics really affect commerce? Journal of Wine Economics, 2(1), 55–74. (Crossref)
Avila, I. (2017). The top 19 best search engines list. Retrieved from https://aofirs.org/articles/the-top-19-best-search-engines-list-2017 [accessed: 08.01.2018].
Barbieri, K., Levy, J.S. (1999). Sleeping with the enemy: The impact of war on trade. Journal of Peace Research, 36(4), 463–479. (Crossref)
BBC (2010). Hong Kong warns against Philippines travel after deaths. Retrieved from https://www.bbc.com/news/world-asia-pacific-11067310 [accessed: 15.03.2018].
Bentzen, J., Smith, V. (2001). Did the French nuclear tests under the Mururoa Atoll affect the export of French wine to Denmark? Aarhus School of Business.
Berden, G., Francois, J., Thelle, M., Wymenga, P., Tamminen, S. (2009). Non-tariff measures in EU-US trade and investment – an economic analysis (OJ 2007/S 180-219493). ECORYS Nederland BV, Rotterdam.
Bernini, F., Juárez, L., García-Lembergman, E. (2024). The consequences of non-tariff trade barriers: Theory and evidence from import licenses in Argentina. IDB Working Paper 1629. https://doi.org/10.18235/0013271 (Crossref)
Blomberg, S.B., Hess, G.D. (2006). How much does violence tax trade? The Review of Economics and Statistics, 88(4), 599–612. (Crossref)
Bloomberg News (2018). Dolce and Gabbana faces China boycott calls over racist videos. Retrieved from https://www.bloomberg.com/news/articles/2018-11-21/dolcegabbana-faces-china-boycott-calls-over-racist-videos [accessed: 19.02.2019].
Brodzinsky, S. (2003). Coca-Cola boycott launched after killings at Colombian plants. Retrieved from https://www.theguardian.com/media/2003/jul/24/marketingandpr.colombia [accessed: 01.05.2018].
Cadot, O., Gourdon, J. (2016). Non-tariff measures, preferential trade agreements, and prices: new evidence. Review of World Economics, 152(2), 227–249. (Crossref)
Carlile, C. (2018). Boycott of Constellation Brands. Ethical Consumer. Retrieved from https://www.ethicalconsumer.org/food-drink/boycott-constellation-brands [accessed: 18.01.2018].
CBS (2008). Canadian sentenced to beheading in Saudi Arabia. Retrieved from https://www.cbc.ca/news/world/canadian-sentenced-to-beheading-in-saudi-arabia-1.733555 [accessed: 04.07.2019].
Chavis, L., Leslie, P. (2006). Consumer boycotts: The impact of the Iraq war on French wine sales in the U.S. Working Paper 11981, National Bureau of Economic Research. https://doi.org/10.3386/w11981 (Crossref)
Clerides, S., Davis, P., Michis, A. (2015). National sentiment and consumer choice: The Iraq War and sales of US products in Arab countries. The Scandinavian Journal of Economics, 117(3), 829–851. https://doi.org/10.1111/sjoe.12112 (Crossref)
Creusen, H., Lejour, A. (2011). Uncertainty and the export decisions of Dutch firms. CPB Discussion Paper 183. Retrieved from https://www.freit.org/WorkingPapers/Papers/Firm-LevelTrade/FREIT299.pdf [accessed: 04.05.2025].
Davis, C.L., Meunier, S. (2011). Business as usual? Economic responses to political tensions. American Journal of Political Science, 55(3), 628–646. https://doi.org/10.1111/j.1540-5907.2010.00507.x (Crossref)
Disdier, A-C., Head, K. (2008). The puzzling persistence of the distance effect on bilateral trade. The Review of Economics and Statistics, 90(1), 37–48. https://doi.org/10.1162/rest.90.1.37 (Crossref)
Eaton, J., Kortum, S. (2002). Technology, geography, and trade. Econometrica, 70(5), 1741– 1779. https://doi.org/10.1111/1468-0262.00352 (Crossref)
Financial Times (2019). Brunei says death penalty will not be enforced on gay sex. Retrieved from https://www.ft.com/content/0ef1e636-6fa6-11e9-bf5c-6eeb837566c5 [accessed: 04.05.2025].
Fink, C., Mattoo, A., Neagu, I.C. (2005). Assessing the impact of communication costs on international trade. Journal of International Economics, 67(2), 428–445. https://doi.org/10.1016/j.jinteco.2004.09.006 (Crossref)
Fouka, V., Voth, H-J. (2013). Reprisals remembered: German-Greek conflict and car sales during the euro crisis. Barcelona GSE Working Paper Series, Working Paper 726. Retrieved from https://bw.bse.eu/wp-content/uploads/2015/09/726-file.pdf [accessed: 04.01.2025]. (Crossref)
Freedom for Animals (2014). Sea Lies Campaign 2014. Retrieved from https://sea-lies.org.uk/sea-lies-investigation-2014/ [accessed: 20.05.2019].
Friedman, M. (2002). Consumer boycotts: Effecting change through the marketplace and media. Routledge, New York–London.
Friedman, T.L. (2005). The World is flat: A brief history of the twenty-first century. Farrar, Straus, and Giroux, New York.
Fuchs, A., Klann, N-H. (2013). Paying a visit: The Dalai Lama effect on international trade. Journal of International Economics, 91(1), 164–177. https://doi.org/10.1016/j.jinteco.2013.04.007 (Crossref)
Glick, R., Taylor, A.M. (2010). Collateral damage: Trade disruption and the economic impact of war. The Review of Economics and Statistics, 92(1), 102–127. https://doi.org/10.1162/rest.2009.12023 (Crossref)
Global Times (2013). Maldives resort cuts hot water supplies for noodle-hungry Chinese guests – Global Times. Retrieved from http://www.globaltimes.cn/content/767434.shtml [accessed: 01.05.2024].
Góes, C., Bekkers, E. (2022). The impact of geopolitical conflicts on trade, growth, and innovation. World Trade Organization, Staff Working Paper ERSD-2022-09. Retrieved from https://www.wto.org/english/res_e/reser_e/ersd202209_e.pdf [accessed: 01.05.2024].
Greenpeace (2001). Stop Esso Campaign Launch in the UK. Retrieved from https://media.greenpeace.org/Detail/27MZIFJJPYYXX [accessed: 01.05.2024].
Harmston, S. (2017). One in five consumers have boycotted a brand. Retrieved from https://yougov.co.uk/politics/articles/17924-one-five-consumers-have-boycottedbrand [accessed: 05.03.2019].
Hegre, H., Oneal, J.R., Russett, B. (2010). Trade does promote peace: new simultaneous estimates of the reciprocal effects of trade and conflict. Journal of Peace Research, 47(6), 763–774. (Crossref)
Heilmann, K. (2016). Does political conflict hurt trade? evidence from consumer boycotts. Journal of International Economics, 99, 179–191. https://doi.org/10.1016/j.jinteco.2015.11.008 (Crossref)
Hoekman, B., Nicita, A. (2008). Trade policy, trade costs, and developing country trade. The World Bank Policy Research Working Paper 4797. Retrieved from https://openknowledge.worldbank.org/server/api/core/bitstreams/c28f75d3-27cd-56f2-ac8d-0518dc4175b8/content [accessed: 01.05.2024].
Hummels, D.L., Schaur, G. (2013). Time as a trade barrier. American Economic Review, 103(7), 2935–2959. https://doi.org/10.1257/aer.103.7.2935 (Crossref)
Hutchinson, W.K. (2002). Does ease of communication increase trade? commonality of language and bilateral trade. Scottish Journal of Political Economy, 49(5), 544–556. (Crossref)
Hyland, V. (2016). People are using GrabYourWallet to boycott Ivanka Trump’s Clothing Line. Retrieved from https://www.thecut.com/2016/10/people-are-using-twitter-toprotest-ivanka-trumps-line.html [accessed: 20.02.2018].
Irish Examiner (2007). Call issued to boycott Japanese goods. Retrieved from https://www.irishexaminer.com/news/arid-30337507.html [accessed: 01.02.2018].
Jacks, D.S., Meissner, C.M., Novy, D. (2011). Trade booms, trade busts, and trade costs. Journal of International Economics, 83(2), 185–201. https://doi.org/10.1016/j.jinteco.2010.10.008 (Crossref)
Jansen, M., Nordås, H.K. (2004). Institutions, trade policy and trade flows. WTO Staff Working Paper ERSD-2004-02 World Trade Organization (WTO), Geneva. https://doi.org/10.30875/78538056-en (Crossref)
Jingxi, M. (2017). Visit to Taiwan by Japanese deputy minister draws criticism from Beijing – China. Retrieved from https://www.chinadaily.com.cn/china/2017-03/28/content_ 28700106.htm [accessed 14.12.2017].
Keshk, O.M., Pollins, B.M., Reuveny, R. (2004). Trade still follows the flag: The primacy of politics in a simultaneous model of interdependence and armed conflict. The Journal of Politics, 66(4), 1155–1179. https://doi.org/10.1111/j.0022-3816.2004.00294.x (Crossref)
Klein, J.G., Ettenson, R., Morris, M.D. (1998). The animosity model of foreign product purchase: An empirical test in the People’s Republic of China. Journal of Marketing, 62(1), 89–100. (Crossref)
Koku, P.S. (2012). On the effectiveness of consumer boycotts organized through the internet: the market model. Journal of Services Marketing, 26(1), 20–26. https://doi.org/10.1108/08876041211199698 (Crossref)
Korinek, J., Sourdin, P. (2011). To what extent are high-quality logistics services trade facilitating? OECD Trade Policy Papers 108. OECD Publishing, Paris. https://doi.org/10.1787/5kggdthrj1zn-en (Crossref)
Le Coz, C. (2013). The canes of wrath – Southeast Asia Globe. Retrieved from: https://southeastasiaglobe.com/sugar-cambodia/ [accessed: 25.09.2019].
Leamer, E. (2007). A flat world, a level playing field, a small world after all, or none of the above. A Review of Thomas L Friedman’s The World is Flat. Journal of Economic Literature, 45, 83–126. https://doi.org/10.1257/jel.45.1.83 (Crossref)
Lederman, D., Olarreaga, M., Payton, L. (2010). Export promotion agencies: Do they work? Journal of Development Economics, 91(2), 257–265. https://doi.org/10.1016/j.jdeveco.2009.09.003 (Crossref)
Lee, T.J. (2012). Democratizing the economic sphere: A case for the political boycott. West Virginia Law Review, 115(2), 531–576. https://researchrepository.wvu.edu/wvlr/vol115/iss2/4 (Crossref)
Limão, N., Tovar, P. (2011). Policy choice: Theory and evidence from commitment via international trade agreements. Journal of International Economics, 85(2), 186–205. https://doi.org/10.1016/j.jinteco.2011.06.002 (Crossref)
Limao, N., Venables, A. J. (2001). Infrastructure, geographical disadvantage, transport costs, and trade. The World Bank Economic Review, 15(3), 451–479. (Crossref)
Long, A.G. (2008). Bilateral trade in the shadow of armed conflict. International Studies Quarterly, 52(1), 81–101. (Crossref)
McDonald, P.J. (2004). Peace through trade or free trade? Journal of Conflict Resolution, 48(4), 547–572. https://doi.org/10.1177/0022002704266117 (Crossref)
Mansfield, E.D., Pollins, B.M. (2001). The study of interdependence and conflict: Recent advances, open questions, and directions for future research. Journal of Conflict Resolution, 45(6), 834–859. (Crossref)
Martin, P., Mayer, T., Thoenig, M. (2008). Make trade not war? The Review of Economic Studies, 75(3), 865–900. (Crossref)
Martínez-Zarzoso, I., García-Menéndez, L., Suárez-Burguet, C. (2003). Impact of transport costs on international trade: the case of Spanish ceramic exports. Maritime Economics & Logistics, 5(2), 179–198. (Crossref)
Melitz, J. (2008). Language and foreign trade. European Economic Review, 52(4), 667–699. https://doi.org/10.1016/j.euroecorev.2007.05.002 (Crossref)
Melitz, J., Toubal, F. (2014). Native language, spoken language, translation and trade. Journal of International Economics, 93(2), 351–363. https://doi.org/10.1016/j.jinteco.2014.04.004 (Crossref)
Mityakov, S., Tang, H., Tsui, K.K. (2013). International politics and import diversification. The Journal of Law and Economics, 56(4), 1091–1121. (Crossref)
Morrow, J.D., Siverson, R.M., Tabares, T.E. (1998). The political determinants of international trade: the major powers, 1907–1990. American Political Science Review, 92(3), 649–661. (Crossref)
Mostafiz, F., Akter, M., Rahman, M. (2024). Cultural distance and bilateral trade: A transitional economy perspective. Business Strategy & Development, 7(2), e393. https://doi.org/10.1002/bsd2.393 (Crossref)
Naturewatch Foundation (2000). Animal Testing. Retrieved from https://naturewatch.org/campaigns/previous-projects/animal-testing/ [accessed: 09.01.2018].
News Digital, N. (2011). Activists call for boycott of Johnson and Johnson over chemicals in baby shampoo. Retrieved from https://www.nbcnews.com/health/health-news/activists-call-boycott-johnson-johnson-over-chemicals-babyshampoo-flna1c9453246 [accessed: 20.02.2019].
Nicita, A., Gourdon, J. (2013). A preliminary analysis on newly collected data on non-tariff measures. Policy Issues in International Trade and Commodities Study Series, 53. United Nations, New York–Geneva. Retrieved from https://unctad.org/system/files/official-document/itcdtab54_en.pdf [accessed: 11.05.2024].
Nitsch, V. (2007). State visits and international trade. World Economy, 30(12), 1797–1816. (Crossref)
Nitsch, V., Schumacher, D. (2004). Terrorism and international trade: an empirical investigation. European Journal of Political Economy, 20(2), 423–433. (Crossref)
Niu, Z., Liu, C., Gunessee, S., Milner, C. (2018). Non-tariff and overall protection: evidence across countries and over time. Review of World Economics, 154(4), 675–703. https://doi.org/10.1007/s10290-018-0317-5 (Crossref)
Oneal, J.R., Russett, B., Berbaum, M.L. (2003). Causes of peace: Democracy, interdependence, and international organizations, 1885–1992. International Studies Quarterly, 47(3), 371–393. https://doi.org/10.1111/1468-2478.4703004 (Crossref)
Pandya, S.S., Venkatesan, R. (2016). French roast: consumer response to international conflict – evidence from supermarket scanner data. Review of Economics and Statistics, 98(1), 42–56. (Crossref)
Pingree, G. (2004). Chinese work ethic tires Spanish. Retrieved from https://www.csmonitor.com/2004/1019/p06s01-woeu.html [accessed: 14.07.2019].
Polachek, S.W. (1980). Conflict and trade. Journal of Conflict Resolution, 24(1), 55–78. (Crossref)
Pollins, B. M. (1989). Conflict, cooperation, and commerce: The effect of international political interactions on bilateral trade flows. American Journal of Political Science, 33(3), 737–761. https://doi.org/10.2307/2111070 (Crossref)
Portes, R., Rey, H. (2002). The determinants of cross-border equity transaction flows. NBER Working Paper 7336. https://doi.org/10.3386/w7336 (Crossref)
Rose, A.K. (2007). The foreign service and foreign trade: embassies as export promotion. World Economy, 30(1), 22–38. (Crossref)
Skiba, A. (2007). Regional economies of scale in transportation and regional welfare. Retrieved from https://core.ac.uk/download/pdf/6711815.pdf [accessed: 08.05.2025].
Taralashvili, T. (2024a). How interstate soft conflicts affect bilateral migration: Results from a structural gravity model. International Economics, 179, 100522. https://doi.org/10.1016/j.inteco.2024.100522 (Crossref)
Taralashvili, T. (2024b). The impact of interstate soft conflicts on bilateral trade flows using structural gravity model. The World Economy, 47(5), 1943–1977. https://doi.org/10.1111/twec.13519 (Crossref)
Trefler, D. (1995). The case of the missing trade and other mysteries. The American Economic Review, 85(5), 1029–1046.
UN Trade and Development [UNCTAD] (2010). Non-tariff measures: Evidence from selected developing countries and future research agenda. United Nations, New York–Geneva. Retrieved from https://unctad.org/system/files/official-document/ditctab20093_en.pdf [accessed: 08.05.2024].
UN Trade and Development [UNCTAD] (2019). International classification of non-tariff measures. United Nations, New York–Geneva. Retrieved from https://unctad.org/system/files/official-document/ditctab2019d5_en.pdf [accessed: 08.05.2024].
Vannerson, F.L. (2003). Wine, francophobia and boycotts. Retrieved from http://www.liquidasset.com/vannerson.pdf [accessed: 08.05.2024].
Watts, J., Weaver, M. (2010). China cancels meeting with Norwegian minister after Nobel peace prize row. Retrieved from https://www.theguardian.com/world/2010/oct/11/china-cancels-norway-meeting [accessed: 24.03.2025].
Westall, S. (2008). German unions urge Nokia boycott over plant closure. Retrieved from https://www.reuters.com/article/us-germany-nokia/german-unions-urge-nokiaboycott-over-plant-closure-idUSL1780747720080117 [accessed: 22.12.2019].
World Trade Organization [WTO] (2007). World Trade Report 2007. Six decades of multilateral trade cooperation: What have we learnt? Retrieved from https://www.wto.org/english/res_e/publications_e/wtr07_e.htm [accessed: 15.04.2024]. (Crossref)
Downloads
- Tamar Taralashvili, Jakub Kraciuk, FOREIGN TRADE OF GEORGIAN AGRICULTURAL PRODUCTS AND EXISTING POTENTIAL OF EXPORT TO THE EUROPEAN UNION MARKET , Acta Scientiarum Polonorum. Oeconomia: Vol. 13 No. 1 (2014)

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.