Global Trade Facing Headwinds
"Trade is vital to the global economic recovery. It is key to eliminating imbalances as deficit countries seek to switch toward more export-driven growth. Despite political pledges to boost trade, there are threats that may yet crimp expansion. Global trade as a share of gross domestic product, which had expanded rapidly for 20 years before the crisis, may stagnate, with worrying implications.
The G-20 nations have repeatedly pledged to fight protectionism. But governments, led by activity by G-20 members, have been introducing 100 to 120 protectionist measures every quarter—more than one a day, according to Global Trade Alert. In terms of financial flows, capital controls are on the rise. And although trade finance mechanisms have proved resilient through the crisis, there are concerns that Basel III capital rules will reduce the liquidity available for trade..."
31 Mar 2011
Richard Barley, Wall Street Journal