São Paulo – The World Trade Organization (WTO) reported this Wednesday (4) that the world’s 20 biggest economies – the so-called G20 – took 39 new trade restriction measures from mid-October 2017 to mid-May 2018. Nearly six barriers were put in place each month, which is double the monthly average from October 2016 to May 2017.
Measures include import tax hikes, stricter customs procedures and the levying of taxes on exports.
Conversely, G20 countries introduced 47 new rules to facilitate international trade, or nearly seven per month, which is slightly up from a prior average of six.
These new rules included reduction or elimination of charges and the streamlining of import-export procedures.
The WTO said these pro-trade measures cover an estimated USD 82.7 billion worth of international trade, whereas the restrictive actions taken cover USD 74.1 billion.
The organization notes, however, that the amount covered by pro-trade measures is down nearly 100% from the last survey, while the coverage of barriers soared by 150%.
“The marked increase in new trade restrictive measures among G20 economies should be of real concern to the international community,” said WTO Director General Roberto Azevêdo (picture above), according to a statement. “Additional trade-restrictive measures have been announced in the weeks since this reporting period and therefore the deterioration in trade relations may be even worse than that recorded here,” he added.
It’s a warning against the trade war prompted by US president, Donald Trump, initially against China, but that already threatens traditional US allies in Europe, Asia and Americas.
The WTO Director General points out that “this continued escalation” poses a serious threat to recovery and growth in all countries and that this is beginning to reflect in some indicators. He advises restraint in applying new measures and asks for a de-escalation of the trade war situation.
The G20 members are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, South Korea, Japan, Mexico, Russia, Saudi Arabia, South Africa, Turkey, United Kingdom, United States and European Union. That is, the WTO report concerns the main countries involved in the “war” prompted by the US.
Translated by Gabriel Pomerancblum and Sérgio Kakitani
