Steering clear of protectionism key to G20 pact
- Source: Global Times
- [04:37 September 17 2009]
- Comments
"We are all in the same boat," the traditional Chinese and Western wisdom goes. If ever there was an urgent need for joint action by everyone in the boat, it is now.
The boat of the world economy is at a critical juncture: Another step forward and the economy will spring back with more "green shoots." But with one step backward, it will likely fall into an even worse slump.
With the leaders of the G20, a group of the advanced and emerging economies, to meet in Pittsburgh next week, a strong and clear message must be delivered to call on all nations to steer clear of protectionism. The world economy is too fragile to bear the risk of further crisis.
But in the lead-up to the G20 summit, and in the wake of the trade dispute between China and the US over Chinese-made tires, warnings have been given by newly released World Trade Organization and Global Trade Alert reports that the G20 bloc is slipping toward protectionist trade policies. It is said that on average a G20 member has "broken the nonprotectionism pledge once every three days."
Protectionism just doesn't pay. While Western politicians are much pressured by high unemployment rates to succumb to protectionism, such measures are only superficially effective. Protectionism does nothing but harm free trade and open a perilous floodgate.
In its reaction to the recent US protectionist measure of imposing stiff tariffs on Chinese-made tires, China has taken a "swift but measured" move.
An increasingly prominent stakeholder in the world economy, China has reiterated its firm stance in favor of free trade and against protectionism, and will continue to do so at the upcoming G20 summit.
As the host of the summit, US President Barack Obama is being urged to take the lead in resisting calls for protectionism and keeping the "say-no-to-protectionism" promise he made with other world leaders during the G20 London Summit in April.
The past G20 summit meetings, held last November and this April, played crucial roles in the recovery of the world economy, through coordinated efforts on a $1.1 trillion stimulus package and International Monetary Fund (IMF) reforms. The upcoming G20 meeting will be similarly key.
The world has paid a huge price for protectionism, and can't take another blow.
All in the same boat, we are looking forward to firm determination and prompt joint action during the summit to propel real progress toward global economic recovery.
