WB: Protectionist measures show worrisome rise since beginning of financial crisis

Special Report:Global Financial Crisis　

WASHINGTON, March 17 (Chinese media) -- Since G20 leaders signed a pledge in November 2008 to avoid protectionist measures, several countries, including 17 of the G20, have implemented 47 measures that restrict trade at the expense of other countries, a new World Bank study said on Tuesday.

Since the beginning of the financial crisis, officials have proposed or implemented roughly 78 trade measures, according to the World Bank's monitoring list of trade and trade-related measures.

Of these, 66 involved trade restrictions, and 47 trade-restricting measures eventually took effect. The effects of these measures are likely minor relative to the size of unaffected markets but they have a significant negative effect on particular exporters shut out of markets.

"Leaders must not heed the siren-song of protectionist fixes, whether for trade, stimulus packages, or bailouts," said World Bank Group President Robert B. Zoellick in a statement.

"Economic isolationism can lead to a negative spiral of events such as those we saw in the 1930s, which made a bad situation much, much worse," he warned.

The cost of inaction on the Doha Agenda is rising, the World Bank study cautions. To date most countries have not yet raised tariffs to bound levels or taken full advantage of headroom on agricultural subsidies.

However, as the recession deepens, many countries may be tempted to. This threat underscores the importance of pushing forward with a rapid conclusion of the Doha round.

The study suggests that the G20, for its part, could adopt additional measures that would strengthen the fragile consensus against further protectionism.