'Protectionism being adopted alarmingly'

Ramani Kangaraarachchi

Protectionism does more harm than good for employment and it loses mere jobs than saving. International Chamber of Commerce Sri Lanka (ICCSL), CEO Gamini Peiris told the Daily News Business that according to a new research report protectionist policies are being implemented at an alarming rate despite repeated commitments by G-20 countries to avoid adopting such measures.

G-20 Protection in the Wake of the Great Recession, the report which was commissioned by the International Chamber of Commerce's (ICC) Research Foundation (ICCRF) and researched and written by the Peterson Institute for International Economics in Washington, D.C. said.

The findings of the report has revealed that all G-20 countries have implemented protectionist trade measures over the last two years. By September 2009, the G-20 were responsible for 172 such measures being implemented, with hundreds more 'in the pipeline'. If only half the upcoming measures were to actually take effect, the world could see a global cycle of protectionist retaliation not seen since the Great Depression.

It also said that protectionist trade measures meant to protect jobs have the opposite effect.

This is because other countries either emulate or retaliate against them, resulting in lost export-related jobs that typically exceed those saved through protectionist actions. For example, it is estimated that the 43,000 jobs that the US government claims to be saved by the 'Buy American' legislation could result in a loss of over 200,000 jobs because of foreign emulation or retaliation.

Thirdly it said that Russia, the United States, India, Argentina and Brazil are the five most protectionist countries based on measures implemented from 2008-2009 and those 'in the pipeline'.

The least protectionist countries are Mexico, Turkey, Australia, the Republic of Korea, South Africa and Saudi Arabia.