The WTO warned on Wednesday of rising protectionism amid the economic crisis as it sharply cut its forecast for trade volumes of developed and developing economies this year.
Making its latest assessment of the global economic situation, the WTO also observed that the sharp contraction of the global economy registered in the first quarter of this year “appears to be slowing down.”
However, citing risks including rising unemployment and oil prices, the organization revised its forecast of global trade contraction to 10 percent from its March forecast of a shrinkage of 9 percent.
Trading volumes of developed economies are now expected to shrink by 14 percent instead of 10 percent, while those of developing economies would contract 7 percent, rather than the earlier forecast of between 2 percent and 3 percent.
Amid the economic crisis, the WTO said in its report to member states that there has been a growing number of instances of protectionism.
“In the past three months, there has been further slippage towards more trade restricting and distorting policies,” it said in the report.
The WTO said that “resort to high intensity protectionist measures has been contained overall, albeit with difficulties.”
It said that even without taking into account trade measures put in place because of the swine flu pandemic, there were more than twice as many new trade barriers introduced than new trade liberalizing measures.
It said restrictions related to the A(H1N1) flu pandemic has been “most noticeable,” listing at least 39 member states which have imposed measures such as import bans on pork products from swine flu-affected countries.
“A worsening of the A(H1N1) flu pandemic could also create further downside risk to global economic recovery,” it said.
The WTO also raised renewed concerns over stimulus programs put in place by governments in a bid to lift economies out of the recession.
It said that there is “very limited information that is available publicly” on these programs, therefore, it is difficult to assess how these measures could distort markets and competition.
In addition, it is unclear when support or subsidies provided by the state to prop up ailing industries such as automobile or banking would be withdrawn when the problems are dealt with.
“An important consideration for the G20 countries, therefore, is to design and announce as soon as possible an exit strategy from their crisis measures that will allow world markets to return to normal again,” it said.
VIGILANCE: While two of the cases are family members of a nurse, there is no sign of community spread and the source of infection is identifiable, the CECC said The Central Epidemic Command Center (CECC) yesterday reported four new domestic COVID-19 cases associated with a cluster infection at a Taoyuan hospital. Since the first case was identified on Tuesday last week, five healthcare workers — two doctors and three nurses — at the Ministry of Health and Welfare’s Taoyuan General Hospital have tested positive for the virus. Minister of Health and Welfare Chen Shih-chung (陳時中), who heads the center, said that two of the four new cases are the husband and daughter of a nurse (case No. 863) who had earlier been confirmed to have COVID-19. The husband (case No. 864)
INCURSION: After 13 PLA aircraft flew into Taiwan’s ADIZ, the US Department of State said that China should rather ‘engage in meaningful dialogue’ with Taiwan US President Joe Biden’s administration on Saturday urged China to stop placing military pressure on Taiwan, while calling on both sides of the Taiwan Strait to engage in peaceful dialogue. The statement by the US Department of State was issued after 13 Chinese military aircraft flew into Taiwan’s southwest air defense identification zone (ADIZ) on Saturday, the highest number observed in a single day this year, the Ministry of National Defense said. The air force scrambled fighter jets to monitor the Chinese aircraft, issuing radio warnings and mobilizing air defense assets until the planes left the ADIZ. The US “notes
CHANGE OF GUARD: Hsiao Bi-khim’s attendance at Joe Biden’s inauguration will come as a boost to those in Taiwan who feared that the new US administration would be less friendly than that of Donald Trump to the nation Representative to the US Hsiao Bi-khim (蕭美琴) is to attend US President Joe Biden’s swearing-in ceremony at the US Capitol after she was invited by the US Joint Congressional Committee on Inaugural Ceremonies, a news release issued by the Taipei Economic and Cultural Representative Office (TECRO) in the US said last night. The news came as a surprise as the Ministry of Foreign Affairs had been reticent about the matter, while Chinese Nationalist Party (KMT) members had accused the Democratic Progressive Party administration of hedging its bets on the Republican Party. Asked about when Hsiao received the invitation, the ministry did not
FAMILY UNIT: The CECC warned that the eldest sister of the latest case, who also has COVID-19, visited Taoyuan’s Chungping evening market on Tuesday and Wednesday The Central Epidemic Command Center (CECC) yesterday reported a domestic case of COVID-19, associated with a recent cluster infection at Taoyuan General Hospital, and two imported cases. Minister of Health and Welfare Chen Shih-chung (陳時中), who heads the center, said that the latest case (No. 885) is a woman in her 50s, who is the third daughter of case No. 881, a man in his 90s. The woman is the main caregiver of her elderly father, who had been hospitalized earlier this month and was treated by a nurse (case No. 852) from Monday to Thursday last week, he said, adding that
RSS