In spite of mainstream's implied agitation for "protectionist" measures aimed at alleviating concerns over "trade imbalances", evidence shows that this has hardly been the case when seen from the actions of OECD economies.
Protectionism has been a typical knee jerk reaction to previous crisis, but apparently not this time.
According to a report by WTO, (Reuters)
``The report calls on G20 leaders to reinforce recovery from the crisis by reaffirming their commitment to open markets and putting their many calls for an early conclusion of the Doha trade round into effect.``"The figures we have released today show that G20 governments have, on the whole, managed to contain protectionism. It is clear that if we are to have a sustainable economic recovery we must keep markets open," WTO Director-General Pascal Lamy told Reuters.
``The report, prepared with the Organization for Economic Cooperation and Development (OECD) and the United Nations Conference on Trade and Development (UNCTAD) at the request of the G20, notes that over 200 million people were unemployed in 2009, taking the jobless rate to record levels.``But most G20 countries are managing the political process of keeping domestic protectionist pressures under control, said the report.'
Nevertheless, earlier trade distorting policies imposed by some countries as the US, as in the case of cotton subsidies, are being challenged today.
This from Wall Street Journal, (bold highlights mine)
``Brazil won the right to trade retaliation late last year as a result of a case filed with the WTO in 2002 against an alleged $12 billion in illegal subsidies offered by the U.S. to its cotton industry between 1999 and 2002. The WTO said Brazil could retaliate up to a ceiling of $830 million.
``Brazil argued that the U.S. subsidies distorted cotton market prices and put local producers at a disadvantage, hurting potential Brazilian exports...
``On Monday, Brazil published a list of more than 100 imports from the U.S. that will be subject to higher tariffs under the WTO ruling. It's made up of mostly nonessential consumer products such as cosmetics and electronic devices, but also includes some pharmaceuticals, hospital products, food items, and some bigger ticket imports such as automobiles.
``Brazilian officials estimated the retaliation measures were worth up to $591 million annually. The country is also considering another $238 million in other forms of retaliation such as limits on royalties and intellectual-property rights.
``Jorge said Tuesday that Brazil still hopes to avoid a drawn-out conflict over the matter.
"Nobody is interested in entering a trade war," he said. "We'll be ready to negotiate when called upon."
``Brazil has given the U.S. 30 days to come up with an alternative proposal for dealing with the cotton subsidy dispute before putting the retaliatory measures into effect.
Protectionism has been a typical knee jerk reaction to previous crisis, but apparently not this time.
According to a report by WTO, (Reuters)
``The report calls on G20 leaders to reinforce recovery from the crisis by reaffirming their commitment to open markets and putting their many calls for an early conclusion of the Doha trade round into effect.``"The figures we have released today show that G20 governments have, on the whole, managed to contain protectionism. It is clear that if we are to have a sustainable economic recovery we must keep markets open," WTO Director-General Pascal Lamy told Reuters.
``The report, prepared with the Organization for Economic Cooperation and Development (OECD) and the United Nations Conference on Trade and Development (UNCTAD) at the request of the G20, notes that over 200 million people were unemployed in 2009, taking the jobless rate to record levels.``But most G20 countries are managing the political process of keeping domestic protectionist pressures under control, said the report.'
Here is a table exhibiting the tariffs erected during Sept 2009-February 2010 from the WTO
Nevertheless, earlier trade distorting policies imposed by some countries as the US, as in the case of cotton subsidies, are being challenged today.This from Wall Street Journal, (bold highlights mine)
``Brazil won the right to trade retaliation late last year as a result of a case filed with the WTO in 2002 against an alleged $12 billion in illegal subsidies offered by the U.S. to its cotton industry between 1999 and 2002. The WTO said Brazil could retaliate up to a ceiling of $830 million.
``Brazil argued that the U.S. subsidies distorted cotton market prices and put local producers at a disadvantage, hurting potential Brazilian exports...
``On Monday, Brazil published a list of more than 100 imports from the U.S. that will be subject to higher tariffs under the WTO ruling. It's made up of mostly nonessential consumer products such as cosmetics and electronic devices, but also includes some pharmaceuticals, hospital products, food items, and some bigger ticket imports such as automobiles.
``Brazilian officials estimated the retaliation measures were worth up to $591 million annually. The country is also considering another $238 million in other forms of retaliation such as limits on royalties and intellectual-property rights.
``Jorge said Tuesday that Brazil still hopes to avoid a drawn-out conflict over the matter.
"Nobody is interested in entering a trade war," he said. "We'll be ready to negotiate when called upon."
``Brazil has given the U.S. 30 days to come up with an alternative proposal for dealing with the cotton subsidy dispute before putting the retaliatory measures into effect.
My comment: So with the blessing of WTO, Brazil will now be exerting pressure on US domestic politics. This is likely to result to a compromise at the expense of vested interest groups.
Forces of globalization appears to be gaining an upperhand.
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