Trade Restrictions on the Rise in G20

The WTO’s fourteenth trade monitoring report on G20 trade measures, issued on 2 November, shows the application of new trade-restrictive measures by G20 economies remained stable compared to the previous reporting period. Although the report shows relative restraint by G20 economies in introducing new trade restrictions, the stockpile of measures continues to grow. Because the uncertain global economic outlook continues to have a negative impact on international trade, the report calls on G20 leaders to deliver on their pledge to refrain from implementing new protectionist measures and to roll back existing trade-restrictive measures.

Key Findings

• In the reporting period between mid-May and mid-October, G-20 economies applied 86 new trade-restrictive measures.  This equates to an average of just over 17 new measures per month indicating that the rate has remained stable compared to the previous reporting period.

• The overall stockpile of restrictive measures introduced by G-20 economies nevertheless continues to grow. Of the 1,441 trade-restrictive measures, including trade remedies, introduced by G-20 economies since 2008 and recorded by this exercise, only 354 had been removed by mid-October 2015.

• The total number of those restrictive measures still in place now stands at 1,087 – up by more than 5% compared to the last report. Despite the G 20 pledge to roll back protectionist measures, therefore, more than 75% of those implemented since 2008 remain in place.

• Although G-20 members are eliminating some of their trade-restrictive measures, the rate by which this is done remains insufficient to seriously dent the stockpile.

• The report also finds that during the reporting period a total of 62 measures aimed at facilitating trade were taken - a monthly average of 12 measures – the lowest number since November 2013.

• More encouragingly the number of trade remedy investigations by G-20 economies has fallen significantly during this reporting period. This decline is primarily because of a drop in the number of anti-dumping initiations and confirms a trend identified in the last monitoring report.

• During this review period global economic growth remained modest, and continued to be unevenly distributed across countries and regions. The downturn in world trade observed at the time of the last monitoring report continued in the second quarter of the year.   

• The WTO Secretariat recently (30 September 2015) lowered its forecast for world merchandise trade volume growth in 2015 from 3.3% to 2.8%, and reduced its estimate for 2016 from 4.0% to 3.9%.

• As WTO Members prepare for the 10th Ministerial Conference in Nairobi in December, the G 20 should seek to set an example in eliminating existing trade restrictions and pursuing further multilateral trade liberalization. The WTO’s role in ensuring a stable, transparent and predictable trading environment will continue to provide a solid backstop against protectionism.