Expressing concerns over the spurt in number of trade restrictive measures by G20 economies, the WTO has said it could have a ‘chilling effect’ on trade flows. According to a WTO report, during mid-October to mid-May 2016, G20 economies applied 145 new trade-restrictive measures as against 100 in the same period previous years.
The G20 economies, a group of developed and developing countries are India, Australia, Brazil, China, France, the US and the UK and EU. WTO Director-General Roberto Azevedo said: “We have long been concerned about the growing stockpile of trade- restrictive measures, and our report suggests that this worrying trend is continuing.
“A rise in trade restrictions is the last thing the global economy needs on Wednesday with GDP growth sluggish and 2016 expected to be the fifth year in a row that trade has expanded by less than 3 per cent.”
He said these trade-restrictive measures, combined with a notable rise in anti-trade rhetoric, ‘could have a further chilling effect on trade flows’, with knock-on effects for economic growth and job creation.
Azevedo added “if we are serious about addressing slow economic growth, then we need to get trade moving again, not put up barriers between economies.” He urged the countries to act on their commitment of not putting up barriers.