Refrain from new protectionist measures: WTO to G-20 leaders

Source: PTI

Concerned over “stockpile” of trade restrictive measures, WTO has asked the G-20 nations, which includes India, to refrain from implementing new protectionist measures. The WTO's 14th trade monitoring report on G-20 trade measures showed that the application of new trade-restrictive measures by G-20 economies remained stable compared to the previous reporting period. Although the report shows relative restraint by G-20 economies in introducing new trade restrictions, the stockpile of measures continues to grow. “Because the uncertain global economic outlook continues to have a negative impact on international trade, the report calls on G-20 leaders to deliver on their pledge to refrain from implementing new protectionist measures and to roll back existing trade-restrictive measures,” the WTO said. During the reporting period (May 16 and October 15), it said, G20 economies applied 86 new trade-restrictive measures. “This equates to an average of just over 17 new measures per month indicating that the rate has remained stable compared to the previous reporting period,” it said. The overall stockpile of restrictive measures introduced by G-20 nations nevertheless “continues to grow”, it said. Of the 1,441 trade-restrictive measures, including trade remedies, introduced by these countries since 2008, only 354 had been removed by mid-October 2015, it added. The total number of those restrictive measures still in place now stands at 1,087 up by more than 5% compared to the last report. “Despite the G-20 pledge to roll back protectionist measures, therefore, more than 75% of those implemented since 2008 remain in place,” it said, adding that although G-20 members are eliminating some of their trade-restrictive measures, the rate by which this is done remains insufficient to seriously dent the stockpile. The report also said that as WTO members prepare for the 10th Ministerial Conference in Nairobi in December, the G-20 should seek to set an example in eliminating existing trade restrictions and pursuing further multilateral trade liberalisation. The WTO has recently lowered its forecast for world merchandise trade volume growth in 2015 from 3.3% to 2.8%, and reduced its estimate for 2016 from 4% to 3.9%. G-20 members include Australia, Brazil, Canada, China, France, EU, India, Japan, Russia, UK and the US. This report reviews trade and trade-related measures implemented by G-20 economies during the period 16 May to 15 October 2015. Trade restrictive measures include mandatory local content requirement and cumbersome registration process. Increasing protectionist measures hinders smooth flow of goods and services across the globe and impacts economic growth.  

November 03, 2015 | 5:10pm IST.