New Delhi, March 13 Global Gross Domestic Product (GDP) will decline this year for the first time since World War II. Protectionism remains a serious threat in the current environment of sharp global contraction.

Since the beginning of the financial crisis, roughly 78 trade measures have been proposed or implemented, of which 66 involved trade restrictions. Of these, 47 measures were actually implemented, including 17 of the G-20.

The increased protectionism, contemplated or already implemented by many countries, may be difficult to reverse and will slow the recovery, says a World Bank paper prepared for the ongoing weekend meeting of the G-20 Finance Ministers and central bankers.
In addition, anti-dumping claims and actions increased 20 per cent in 2008 relative to 2007. It increased 55 per cent in the second half of 2008 as compared to the first half the same year, according to the World Bank paper—“Swimming against the tide: How developing countries are coping with the global crisis”.

US tops list

While new anti-dumping measures are on the rise, the US, which is the world’s largest economy, topped the list of countries in terms of the number of new anti-dumping duties (AD) imposed during July-December 2008. The number of new AD imposed by the US during the second half of 2008 was little over 20, but far higher than the less than five actions in the first half. India was positioned second in rankings in terms of the new AD imposed during July-December 2008.

The protectionist measures come at a time when the world trade is on track to register its largest decline in 80 years, with the sharpest losses in East Asia. The paper notes that the financial conditions facing developing countries have deteriorated sharply.