Gary Grumble new issue June 22nd 2012

Do you remember me having a go at the World Trade Organisation for not coming down hard on marketers of counterfeit goods, China headed the counterfeiters league table by a distance and as a member of the W.T.O. I thought they should have been shown a red card with the threat that failure to put things right could result in their expulsion from the World Trade Body.

Now I am at it again on the question – “what is the W.T.O   doing to reduce protectionism?”

On the sixth of June 2012 a Press Release from the EC Directorate-General for Trade in Brussels reported a  “ Staggering  Increase” of  Protectionism in the G20 countries. G20 countries being the leading nations in the  world  manufacturing  league table.

What is Protectionism?  broadly speaking it refers to trade obstruction measures used by countries who want to protect their industries from competition from overseas, these obstructions can  take many forms, documentary requirements, pre-shipment inspections, product quality certifications and product marketing, import licences and quotas  --- the list goes on. The intention is clear, namely to slow down or reduce the flow of imported goods.

Protectionism is very much against the principles of   “free trade”  and W.T.O policies of reducing or eliminating  “ Non-tariff barriers”

In the depression of the early 1930’s two U.S  senators  with the surnames of Smoot and Hawley sought to reduce imports into the USA and persuaded the U.S authorities to bring in  higher rates of import duties. What happened?  Disaster!!. Their misguided efforts led to a world wide slump of huge proportions. Does it now look as if the world has forgotten Smoot &  Hawley?.

 The following are 31 countries which the E.C. report names as being monitored :-

Algeria, Argentina, Australia ,Belarus Brazil, Canada, China, Ecuador, Egypt, Hong Kong, India, Indonesia, Japan, Kazakhstan, Malaysia, Mexico, Nigeria, Pakistan, Paraguay, Philippines, Russia, Saudi Arabia, South Africa, South Korea, Switzerland, Taiwan, Thailand, Turkey, Ukraine, USA, and Vietnam