ACCORDING to the WTO, UNCTAD and OECD, G20 governments should prevent
further deterioration in their collective trade and investment policy stance and
focus on promoting open markets to re-boot growth in the world
economy.
In their seventh report to the G20, the organisations say that
the accumulation of new restrictions, combined with governments’ failure to
remove existing ones, are clearly adding to downside risks facing the global
economy.
Between October 2011 and early-May 2012, thirteen G20 members
implemented policy measures related to investment, national security or
international trade agreements, according to the report. Most had the effect of
opening up markets and increasing transparency for investors.
Other
measures, including an expropriation and new entry restrictions, heightened
perceptions of risk and could damage the business climate and economic recovery,
according to the report.
Work undertaken at the OECD over the past 25
years, included in today’s joint report, documents the level and nature of
support and protection to some sectors, such as agriculture, and argues forcibly
for further liberalisation of trade in farm products.
The negative impact
of protectionist and discriminatory trade measures was highlighted in a study by
10 international organisations, including the OECD and WTO, released last
week.
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