lunes, 14 de septiembre de 2009

The crisis has not caused widespread restrictions on international trade

The World Trade Organization (WTO) today presented a nuanced picture of the evolution of international trade amid the global crisis, in which there are no widespread restrictions on trade, though several countries have adopted defensive measures of various kinds.

In a report focused on the G-20 (developed and emerging economies), the body reveals that some of these nations have increased tariffs, introduced new non-tariff measures and "most of them have continued to use trade defense mechanisms" .

This is critical in an economic environment, with a projected decline in world trade from 10 percent in 2009 and from 30 to 40 percent in FDI.

On economic and tax package launched in several countries to address the crisis, the report clearly states that they promote international trade, although "some contain elements that favor domestic products and services in over imported.

"It is urgent that governments begin to plan coordinated strategies to break this scheme as soon as possible," says the study, prepared by the WTO in collaboration with the Organization for Economic Cooperation Development (OECD) and the Conference of the UN Trade and Development (UNCTAD).

The G20 has commissioned three agencies assess whether protectionism has increased as a result of the crisis and present its findings ahead of its meeting this month in Pittsburgh (USA).

The analysis result is ambivalent because, on one hand, the investment policies of the G-20 make up a table "calming" measures to increase openness and transparency for foreign investors.

However, some countries in this group applied at one time "layout from drawing entities that discriminate or serve as a barrier to investment."

Therefore, WTO, OECD and UNCTAD call on the leaders of the G-20 to "remain vigilant" and to not fall into the trap of believing that the crisis is over, despite the positive signs of economic recovery in some parts of the world.

"The increase in unemployment due to the crisis will continue to fuel protectionist pressures in the years ahead," it warned.

He even warns that this could exacerbate the contraction in trade and investment, and affect confidence in recovery.

In terms of decisions to protect jobs and corporate profits in this time of crisis, the risk would "create a legacy of uncompetitive industries and over capacity in certain sectors, thereby generating protectionist pressures continue, even after economic activity has improved. "

For the authors of the study, a collective decision of the G-20 of early conclusion of trade negotiations of the Doha Round would be a clear signal to the world that protectionism is not the solution to the crisis.

This is because the rules would be established in any agreement that would reduce the possibilities of setting new restrictions on trade or to increase existing ones.

As an indicator of the level of protectionism among the G-20, the evaluation notes that the number of investigations on anti-dumping (unfair competition) were the same level from January to July this year than the same period of 2008 .

With the largest number of investigations initiated in that period were the European Union (15), Argentina and the United States, with 14 each, Turkey (12), India (13) and Brazil (9).

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