Dhaka, Nov. 1 -- Critics of the United States (US) trade policy often argue that America is deeply protectionist. Tariffs on steel, aluminum, and Chinese imports, subsidies for farmers, and new industrial supports like the CHIPS and Science Act are frequently cited as proof that Washington talks free trade but practices favoritism at home. Yet the US is hardly an outlier. Around the world, governments of every stripe have built walls around industries they consider vital, all while demanding open markets abroad.

China is perhaps the most obvious case. Its economic rise has been fuelled by a carefully managed combination of subsidies, currency management, market-entry barriers, and technology-transfer requirements imposed on foreign compa...