Reassessing international trade costs: the role of conventional and unconventional barriers

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