Analysis: G20 nations heighten global trade barriers
Trade protectionism on the rise
As the world grapples with the economic fallout from the COVID-19 pandemic, G20 nations are increasingly resorting to trade protectionism, according to a new report. The report, released by the World Trade Organization (WTO), found that the number of trade-restrictive measures implemented by G20 countries increased by 25% in 2020.This increase in trade protectionism is a worrying trend, as it could lead to a decline in global trade and economic growth. The WTO has warned that the global economy could lose up to $2 trillion in exports if trade barriers continue to rise.
What is driving the rise in trade protectionism?
There are a number of factors driving the rise in trade protectionism. One factor is the COVID-19 pandemic. The pandemic has caused a sharp decline in global trade, and some countries are resorting to protectionist measures in an attempt to protect their domestic industries.Another factor driving the rise in trade protectionism is the increasing geopolitical tensions between the United States and China. The Trump administration has imposed tariffs on a wide range of Chinese goods, and China has retaliated with tariffs of its own. This trade war has led to a sharp decline in trade between the two countries, and it is also having a negative impact on global trade.
The consequences of trade protectionism
The consequences of trade protectionism can be severe. Trade protectionism can lead to higher prices for consumers, reduced choice, and lower economic growth. It can also lead to job losses and a decline in living standards.In the long run, trade protectionism is a lose-lose proposition. It harms both the countries that impose it and the countries that are targeted by it. The WTO has called on G20 nations to refrain from using trade protectionist measures and to work together to promote free and fair trade.
What can be done to stop the rise in trade protectionism?
There are a number of things that can be done to stop the rise in trade protectionism. One important step is to address the underlying causes of protectionism, such as the COVID-19 pandemic and geopolitical tensions.Another important step is to strengthen the global trading system. The WTO is the key forum for negotiating and enforcing trade rules. Strengthening the WTO will help to create a more level playing field for all countries and reduce the incentives for countries to resort to protectionist measures.
