Wednesday, June 30, 2010

Protectionist Policies Continue Despite G-20 Promises – Report

(NASDAQ/Dow Jones Newswires)

Protectionist trade policies continue to be implemented among Group of 20 countries, despite national commitments to the contrary, according to a report.

With unemployment hovering near 10% among the advanced G-20 members, many governments have and continue to adopt protectionist measures with the hope of securing domestic jobs and industry, attempting to shield themselves from global competition. However, a new report by the International Chamber of Commerce with research by the Peterson Institute for International Economics, finds that the effect of such actions is just the opposite. “Protectionist trade measures meant to protect jobs have the opposite effect, because of emulation and retaliation,” said the report.

All G-20 countries have implemented protectionist trade measures over the past two years, and there are hundreds more coming, according to the authors.