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World Bank Books

The Fateful Allure of Protectionism: Taking Stock for the G8

Having reviewed the available evidence on the implementation of the
G20 commitment to refrain from raising new barriers to trade and investment, this World Bank-CEPR report identifies four reasons why increased vigilance against protectionism is called for over the next 12 months.

1. Only a small portion of the stimulus package money has been spent so far. As government expenditure will be directed towards local economic activity, the incentives for trading partners to respond in kind and discriminate against foreign firms and products may rise.

2. Even the most optimistic forecasts for economic recovery imply substantial increases in unemployment in the major trading powers in 2010 and, in some cases, in 2011. In fact, the rises in unemployment experienced to date are smaller than those expected in the coming year. Rising unemployment has long been associated with government resort to protectionist measures. The protectionist temptation will almost surely intensify before it abates � a finding that will hold even if the much vaunted "green shoots" do emerge into recovery.

3. Many governments now have little margin for manoeuvre in fiscal and monetary policy, and in the event that the recession persists, they could resort to trade and industrial policies as a stop-gap.

4. A significant increase in the use of trade-distorting policy by a major jurisdiction could set off unwelcome domino effects, not unlike that witnessed for auto subsidies, diary export subsidies, and procurement nationalism in the last few months.

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Citation

Evenett, S, B Hoekman and O Cattaneo (eds) (2009), ‘The Fateful Allure of Protectionism: Taking Stock for the G8‘, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/fateful-allure-protectionism-taking-stock-g8

Citation

Evenett, S, B Hoekman and O Cattaneo (2009), ‘Introduction: Principal findings and policy recommendations‘, in Evenett, S, B Hoekman and O Cattaneo (eds), The Fateful Allure of Protectionism: Taking Stock for the G8, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/fateful-allure-protectionism-taking-stock-g8

Citation

Irwin, D (2009), ‘A Historical Perspective‘, in Evenett, S, B Hoekman and O Cattaneo (eds), The Fateful Allure of Protectionism: Taking Stock for the G8, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/fateful-allure-protectionism-taking-stock-g8

Citation

Messerlin, P (2009), ‘Too Early to Cry Wolf‘, in Evenett, S, B Hoekman and O Cattaneo (eds), The Fateful Allure of Protectionism: Taking Stock for the G8, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/fateful-allure-protectionism-taking-stock-g8

Citation

Skorobogatova, O, E Gamberoni, M Mimouni and C Averbeck (2009), ‘Business Perceptions of Changing Trade Measures‘, in Evenett, S, B Hoekman and O Cattaneo (eds), The Fateful Allure of Protectionism: Taking Stock for the G8, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/fateful-allure-protectionism-taking-stock-g8

Citation

Van Aaken, A and J Kurtz (2009), ‘Can International Economic Law Constrain Protectionism?‘, in Evenett, S, B Hoekman and O Cattaneo (eds), The Fateful Allure of Protectionism: Taking Stock for the G8, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/fateful-allure-protectionism-taking-stock-g8

Citation

Olarreaga, M, M Fugazza, A Nicita and L Foletti (2009), ‘Tariff Changes‘, in Evenett, S, B Hoekman and O Cattaneo (eds), The Fateful Allure of Protectionism: Taking Stock for the G8, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/fateful-allure-protectionism-taking-stock-g8

Citation

Bown, C (2009), ‘Antidumping, Safeguards, and other Trade Remedies‘, in Evenett, S, B Hoekman and O Cattaneo (eds), The Fateful Allure of Protectionism: Taking Stock for the G8, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/fateful-allure-protectionism-taking-stock-g8

Citation

Farole, T and J Chauffour (2009), ‘Trade Finance‘, in Evenett, S, B Hoekman and O Cattaneo (eds), The Fateful Allure of Protectionism: Taking Stock for the G8, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/fateful-allure-protectionism-taking-stock-g8

Citation

Evenett, S (2009), ‘Stimulus Packages and Government Procurement‘, in Evenett, S, B Hoekman and O Cattaneo (eds), The Fateful Allure of Protectionism: Taking Stock for the G8, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/fateful-allure-protectionism-taking-stock-g8

Citation

Wyplosz, C and S Weber (2009), ‘Exchange Rate Policies‘, in Evenett, S, B Hoekman and O Cattaneo (eds), The Fateful Allure of Protectionism: Taking Stock for the G8, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/fateful-allure-protectionism-taking-stock-g8

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Srivastava, G and B Dhar (2009), ‘Labour Movement Restrictions‘, in Evenett, S, B Hoekman and O Cattaneo (eds), The Fateful Allure of Protectionism: Taking Stock for the G8, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/fateful-allure-protectionism-taking-stock-g8

Citation

Jenny, F (2009), ‘Competition Policy‘, in Evenett, S, B Hoekman and O Cattaneo (eds), The Fateful Allure of Protectionism: Taking Stock for the G8, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/fateful-allure-protectionism-taking-stock-g8

Citation

Steenblik, R (2009), ‘Green Protectionism‘, in Evenett, S, B Hoekman and O Cattaneo (eds), The Fateful Allure of Protectionism: Taking Stock for the G8, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/fateful-allure-protectionism-taking-stock-g8

Citation

Sauvant, K (2009), ‘FDI Protectionism is on the Rise‘, in Evenett, S, B Hoekman and O Cattaneo (eds), The Fateful Allure of Protectionism: Taking Stock for the G8, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/fateful-allure-protectionism-taking-stock-g8

Citation

Claessens, S (2009), ‘Financial Nationalism‘, in Evenett, S, B Hoekman and O Cattaneo (eds), The Fateful Allure of Protectionism: Taking Stock for the G8, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/fateful-allure-protectionism-taking-stock-g8

Citation

Tangermann, S and T Josling (2009), ‘Agriculture‘, in Evenett, S, B Hoekman and O Cattaneo (eds), The Fateful Allure of Protectionism: Taking Stock for the G8, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/fateful-allure-protectionism-taking-stock-g8

Citation

Gereffi, G and S Frederick (2009), ‘Review and Analysis of Protectionist Actions in the Textile and Apparel Industries‘, in Evenett, S, B Hoekman and O Cattaneo (eds), The Fateful Allure of Protectionism: Taking Stock for the G8, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/fateful-allure-protectionism-taking-stock-g8

Citation

Mattoo, A and I Borchert (2009), ‘Services (a Case Study of the United States)‘, in Evenett, S, B Hoekman and O Cattaneo (eds), The Fateful Allure of Protectionism: Taking Stock for the G8, CEPR Press, Paris & London. https://cepr.org/publications/books-and-reports/fateful-allure-protectionism-taking-stock-g8