Trade and the Crisis: Protect or Recover
Journal of International Commerce, Economics and Policy (JICEP), Vol. 1, No. 2, 2010
Posted: 30 May 2011
Date Written: October 1, 2010
We show that new trade restrictions implemented since the onset of the global financial crisis have had — in the limited products targeted — a strong distortionary impact on trade. Their aggregate impact is modest, however, as most countries have resisted a widespread resort to protectionism. Looking ahead, sustained high unemployment, uneven growth, and an unwinding of government stimulus measures suggest that protectionist pressures may rise. Continuing and further enhancing monitoring of all protectionist measures will help, but the surest way to avoid such a downside scenario is to tighten multilateral trade commitments by completing the World Trade Organization (WTO) Doha Round.
Keywords: protectionism, transparency, WTO
JEL Classification: F02, F13, F40
Suggested Citation: Suggested Citation