São Paulo – The G20 member countries have reduced the rate of adoption of protectionist measures in the past five months, according to a report released this Tuesday (31st) by the Organization for Economic Cooperation and Development (OECD), the World Trade Organization (WTO) and the United Nations Conference on Trade and Development (Unctad). It is a change from the previous survey, released on May 31st, which indicated that the rate of trade-restrictive measures had been maintained in the five preceding months.
The study points out that 71 measures of this type went into force in the group of the world’s 20 leading economies, affecting 0.4% of the bloc’s imports, and 0.3% of world imports. The report informs, however, that the number of trade-facilitating decisions was even higher, impacting 0.7% of G20 imports. Actions considered beneficial accounted for 55% of all new trade rules in the last five months, as against 45% in the preceding period.
The lowered import taxes on capital goods, computing and telecommunications in Brazil are cited by the study as an example of facilitating measures, albeit temporary. On the other hand, the country reached an all-time high in number of antidumping investigations in the past five months, at 27 suits filed, as against nine in Canada, the second highest ranking country. Most restrictive actions during the period related to trade defence, such as antidumping, and the adoption of stricter customs procedures.
The organizations warn that despite the slower pace, the new protectionist measures add up to others implemented since 2008, when the international financial crisis erupted. The rules put in place since 2008 affect 3% of global trade and 4% of G20 transactions, discounting the barriers lifted, which amount to 21% of the total since 2008.
In this regard, the report claims the accumulation of restrictive actions remains a cause for concern, as the world economy is still struggling, and the WTO has revised its international trade growth forecast for this year from 3.7% to 2.5% – trade is expected to grow by 1.5% in developed economies and 3.5% in developing ones.
The three multilateral organizations thus advise the G20 governments to step up their efforts to open their markets and boost international cooperation. “The temptation of protectionism is strong as ever,” said the OECD secretary general Angel Gurría, according to an OECD press statement. According to him, restrictions on trade only cause the world economic situation to worsen.
As for investment, the G20 countries have not adopted measures to restrict the entry of foreign funds in the last five months. Brazil, Canada, India, Mexico, Russia and Turkey have changed their rules on the matter, but did so to reduce restrictions more than to increase transparency. The report adds that 12 G20 member countries have even signed international investment agreements during the period.
The periodical survey of restrictions on trade and investment is carried out by request of the G20 itself as a means for monitoring the group, which has stood against protectionism, at least in theory, since 2008. The three organizations also insist on the resumption of multilateral trade negotiations.
*Translated by Gabriel Pomerancblum
