Protectionism's Quiet Return: GTA's Pre-G8 Summit Report
Given that the current holder of this year’s G8 Presidency, the UK, has made combatting protectionism a priority, the 12th GTA report has been compiled and released just before the G8 Summit in Lough Erne, Northern Ireland, on 17-18 June 2013. Concerns about protectionism are not confined to the UK, however. In April 2013, when introducing reduced forecasts for world trade growth, the Director-General of the WTO, Mr. Pascal Lamy, warned that the protectionist threat may be greater now than at any time since the onset of the global economic crisis. On the basis of the evidence presented here, Mr Lamy’s concerns were well founded.
Building on a massive update of Global Trade Alert that saw 904 new entries added to the GTA database which now comprises 3,334 reports on government measures, this report provides a comprehensive overview of the current state of protectionist and trade-liberalising dynamics.
Download the report here.
Table of Contents
1. Executive Summary
2. Maps of the Countries Harmed by each G8 Member
3. The Landscape of Crisis-Era Protectionism before the 2013 G8 Summit
4. The G8 and Crisis-Era Protectionism: Country Tables
Date Published: 12 Jun 2013
On 11 April 2013 the Financial Times published an editorial highlighting the dangers of rising protectionism. This followed a start warning on the same matter from the WTO's Director-General. In its editorial the Financial Times mentioned the findings of the last report of the Global Trade Alert.
In a speech in London on 21 September 2012 and in newspaper interviews the Brazilian Finance Minister has used Global Trade Alert data to refute claims that Brazil has engaged in protectionism. As a result of inquiries from the press, this notice contains the latest information on worldwide rankings of protectionism using the four metrics assembled by the Global Trade Alert. Readers impatient for the findings can skip the next paragraph, which explains what data was assembled here.
The Global Trade Alert collects data on policies implemented and announced by 233 jurisdictions. Since November 2008, the start of our monitoring, approximately 2,500 reports on policies that could affect international commerce have been posted on this website. Jurisdictions differ in their resort to protectionism and to help users compare across them the Global Trade Alert reports four summary statistics, the first concerning the frequency of resort to protectionism and the other three concern the likely impact or incidence of that protectionism. Specifically, the GTA includes (a) a count of the total number of government measures that have been implemented since November 2008 and almost certainly discriminate against foreign commercial interests (the measures classifed red in the GTA database), (b) the total number of product categories directly affected by the almost certainly discriminatory measures implemented by a jurisdiction, (c) the total number of domestic economic sectors benefiting from the almost certainly discriminatory measures implemented by a jurisdiction, and (d) a conservative estimate of the total number of trading partners directly affected by the almost certainly discriminatory measures implemented by a jurisdiction.
How does Brazil perform on these four metrics? The graphic above (which can be downloaded) shows that Brazil has implemented 56 protectionist measures since November 2008. Only 8 other jurisdictions have resorted to protectionism more often. The three measures of protectionism put Brazil in rank 14 through 25 in the world. On conservative estimates, Brazil's protectionism has harmed 132 trading partners. One hundred and ninety-two of the 233 jurisdictions monitored have better records on protectionism than Brazil on all four criteria reported by the Global Trade Alert. Overall, then, Brazil has sinned, many countries more have sinned far less and a few have sinned more.
For further information on what measures--both liberalising and protectionist--that Brazil has undertaken please go to the following page and select Brazil as an implementing jurisdiction: http://www.globaltradealert.org/site-statistics
For further information on how foreign protectionism has harmed Brazil's commercial interests, please go to the following page and select Brazil as an affected jurisdiction http://www.globaltradealert.org/site-statistics
Please do not hesitate to contact me with any questions about this data and its potential implications for policymaking.
Simon J. Evenett, email@example.com
Coordinator, Global Trade Alert
Professor of International Trade and Economic Development, University of St. Gallen, Switzerland
22 September 2012
The GTA's findings on Argentinian trade policy have been cited in a number of media reports. Many of these articles incorrectly assert that the GTA is run by the World Bank. The GTA is an independent trade monitoring initiative. World Bank support for this initiative has been appreciated but it was always recognised that the GTA's independence was paramout and, like every other sponsor of the GTA, the World Bank has kept at arms length and not commented on, or seek to influence, the implementation of the GTA.
Trade barriers once again threaten the global economy, and the U.S. isn't helping.
To read the full article, press here
Capitalist leaders are in disarray as they strive and fail to get to grips with the eurozone crisis and its threat to the global economy. Neither the G20 summit in Mexico, nor crisis talks in Rome offered any solutions, as politicians and economists desperately try to hang on to the eurozone roller-coaster. To read the full article, click here.
Commentary on the WTO report on the recent increase in global trade protectionism. To read the full article, click here.
/* Style Definitions */
mso-padding-alt:0cm 5.4pt 0cm 5.4pt;
font-family:"Times New Roman";
Leaders of the G20 have pledged to take action to boost weakening world economic growth and support moves by eurozone countries to move toward a banking union to restore stability to the financial system, but they offered little new concrete aid.
For the full article, click here.