Protectionism on rise with increasing force

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From Fazle Rashid
NEW YORK, Mar 23: Analysts are not yet prepared to say good bye to globalisation but the protectionism is rising with increasing force. Protectionism is on the march. The world leaders pledge to protect free trade is wearing thin. The surge in protectionism is casting a shadow over an economic summit meeting of world leaders billed for London on April 2.
Trade barriers are going up around the world. As the recession's grip tightens, the pressures are likely to intensify, New York Times (NYT) in a report said. Trade disputes are undermining efforts at a coordinated response to the deepest global economic downturn since World War 11, the same paper said.
Far from adhering to their own pledges of not creating any new barriers for 12 months many countries have adopted measures in contravention of their commitment to do so. The World Bank (WB) in a report said that 17 out of 20 members of the G20 have adopted 47 measures aimed at restricting trade.
Russia has raised tariff on used cars. China has tightened import standards. India has banned import of Chinese toys. Countries from America to Australia are subsidising the autocar dealers. The most vivid example of that policy is the " Buy American " clause in the US stimulus packages. A top bank executive in London is suing a Canadian bank for making him redundant because he is not a Canadian. The WB has urged World Trade Organisation (WTO) to monitor protectionist actions and make them public.
The WB has said synchronised global downturn is likely to result in the largest annual decline in world trade in 80 years. Rober Zoellick had earlier described 2009 to be a very dangerous year.
The White House in the meanwhile is wooing reluctant private investors to buy as much as $1.0 trillion worth of toxic assets from the banks with government help. There have been no buyers of these assets because of their uncertain risk. The private investors said they would comply with government request but only if no strings are attached.
Banks trying to reduce their exposures to losses on credit card loans are driving some borrowers deeper into trouble, a reputed paper said. Major card providers like American Express, Citigroup and Bank of America are raising interest rates, closing dormant accounts and paring credit line.
Qantas, the Australian airliner is set to restructure its operations in a cost saving bid. The plan includes second wave of redundancies after examining airline's current business. The Qantas will axe jobs saying the revenues are falling sharply.
Dirham for Daimler is the heading of a news in a reputed paper. Aabar Investments, an Abu Dhabi based company is buying a 9.1 per cent stake in Daimler to bolster German premium carmaker's capital base. Aabar will become the largest stakeholder as Daimler is battling against worst industry crisis in decades. The automakers round the globe are facing a crippling crisis. Some are faced with the prospect of closure.