Log in to your IBTimes Account

close
ID
Password
  • Set your IBTimes.com Edition

World Bank urges tougher G20 stand on protectionism



17 March 2009 @ 08:32 pm ET

The World Bank urged the group of 20 leading developed and developing nations on Tuesday to toughen their stance against protectionism by agreeing to report any new subsidies or trade-restricting measures to the World Trade Organization every three months.

Related Topic

Get stories by e-mail on this topic.

E-mail:

"Leaders must not heed the siren-song of protectionist fixes, whether for trade, stimulus packages or bailouts," World Bank Group President Robert Zoellick said in a statement.

"Economic isolationism can lead to a negative spiral of events such as those we saw in the 1930s, which made a bad situation much, much worse."

G20 leaders, meeting in Washington in November amid the growing global financial crisis, promised not to impose any new trade-restricting measures for 12 months.

But since then, 17 members of the G20 and additional other countries have implemented a total of 47 measures that restrict trade, the bank said its research showed.

Increased tariffs account for about one-third of the new measures and include Russia hiking duties on used autos and Ecuador boosting duties on more than 600 items, the bank said.

Argentina has imposed new "nontariff barriers" on imports of auto parts, textiles, TVs, toys, shoes and leather goods and Indonesia has said certain foreign goods -- including garments, footwear, toys, electronics, food and beverage -- would be only permitted in five ports and airports, the bank said.

"Subsidies proposed for the auto industry have proliferated and total some $48 billion worldwide, mostly ($42.7 billion) in high-income countries," the bank said.

That includes a U.S. direct subsidy of $17.4 billion to its big three automakers and other subsidies provided by Canada, France, Germany, United Kingdom, China, Argentina, Brazil, Sweden and Italy, the bank said.

At next G20 leaders meeting in London in early April, countries should commit to providing the World Trade Organization with quarterly reports on new trade restrictions and industrial and agricultural subsidies, the bank said.

International Business Times

    Click!
  • Rate this article:

Comments

Post Your Comment

*Name


advertisement
More Global Markets
Commodity prices advanced across the board with Reuters/Jefferies CRB Index gained +2% last week. However, while precious metals and certain base metals ...
Today's extraordinary loose monetary conditions are "benefiting hard assets," according to James Passin, co-founder and manager of Firebird Global Fund a...
he 12z FRIDAY operational GFS still shows a significant event developing for the eastern portions of the Upper Plains and Midwest 11/23-11/24. T...

advertisement
Advertisement
POS Magnetic Card Readers

Online distributor for point of sale equipment, TYSSO and Pegasus.

 
IBTimes.com Web
Partners
International Business Times© 2009 The Ibtimes Company. All Rights Reserved. Terms of service | Privacy Policy | Advertising | About Us | Contact Us | Archives