WTO Report Shows Trade Restrictions among
G20 Continuing at Historic High Levels
The WTO’s 21st Monitoring Report on G20 trade measures
issued on 24 June shows that the trade coverage of new import-restrictive
measures introduced during the period (October 2018 to May 2019) was more than
3.5 times the average since May 2012 when the report started including trade
coverage figures. The report found that trade coverage of USD 335.9 billion
during the period is the second highest figure on record, after the USD 480.9
billion reported in the previous period. Together, these two periods represent
a dramatic spike in the trade coverage of import-restrictive measures, leading
WTO Director-General Roberto Azevêdo to call on G20
economies to work together urgently to ease trade tensions.
Key
findings
·
This Report covers new trade and
trade-related measures implemented by G20 economies between 16 October 2018 and
15 May 2019. During this period trade tensions
continued to dominate the headlines and added to the uncertainty surrounding
international trade and the world economy.
·
The Report provides evidence that this
turbulence is continuing. The previous period saw a record level of new
restrictive measures introduced. Most of these measures remain in place and
have now been added to by a series of new measures in the current period which are also of a historically high level.
·
The trade coverage of new
import-restrictive measures introduced by G20 economies during this period was
more than three-and-a-half times the average since May 2012 when the Report
started including trade coverage figures.
·
The trade coverage of
import-restrictive measures during the period is estimated at
USD 335.9 billion. This is the second
highest figure on record, after the USD 480.9 billion reported in the previous
period. Together these two periods represent a dramatic spike in the trade
coverage of import-restrictive measures. The stable trend identified up to July
2018 has been replaced with a steep increase in the
trade coverage of import-restrictive measures.
·
The Report also notes that several
significant trade-restrictive measures which fall outside of
the review period remain under consultation for potential later
implementation. This further compounds the challenges faced by governments,
businesses and consumers in the current global economic environment.
·
In terms of the number of measures
introduced, G20 economies implemented 20 new trade-restrictive measures during
the period, including tariff increases, import bans and new customs procedures
for exports. While fewer measures were introduced
during this review period than in previous periods, the scale of those measures
is much increased in terms of their trade coverage and the level of tariffs
imposed.
·
G20 economies also implemented 29 new
measures aimed at facilitating trade, including eliminating or reducing import tariffs,
export duties and eliminating or simplifying customs procedures for exports.
The trade coverage of the import-facilitating measures implemented during the
review period is estimated at USD 397.2 billion, which
is 1.8 times higher than in the previous G20 Report.
·
The monthly average of 12 initiations
of trade remedy actions during the review period is the lowest registered since
2012. The trade coverage of trade remedy initiations (USD 18.4 billion) has fallen compared to the previous period. The trade
coverage of trade remedy terminations recorded in the review period (USD 14.6 billion) is two and a half times higher than that reported
in the previous G20 Report.
·
This Report highlights the continuing
challenges in global trade. G20 economies must follow through on their
commitment to trade and to the rules-based international trading system and
work together urgently to ease trade tensions and to improve and strengthen the
WTO.
Commenting on the report, Director-General Roberto Azevêdo said:
“This report provides further evidence that the turbulence
generated by current trade tensions is continuing, with trade flows being hit
by new trade restrictions on a historically high level. The stable trend that
we saw for almost a decade since the financial crisis has
been replaced with a steep increase in the size and scale of
trade-restrictive measures over the last year. This will have consequences in
increased uncertainty, lower investment and weaker trade growth.
“These findings should be of serious concern for the whole
international community. We urgently need to see leadership from the G20 to
ease trade tensions and follow through on their commitment to trade and to the
rules-based international trading system.”
The Report shows that turbulence in global trade continued
during the period. The previous period saw a record level of new restrictive
measures introduced. Most of these measures remain in place and have now been
added to by a series of new measures in the current period
which are also of a historically high level. In addition, several
significant trade-restrictive measures are being considered
for potential later implementation. This further compounds the challenges and
uncertainty faced by governments, businesses and consumers in the current global
economic environment.
In terms of numbers, G20 economies implemented 20 new
trade-restrictive measures between mid-October 2018 and mid-May 2019, including
tariff increases, import bans and new customs procedures for exports. While
fewer measures were introduced during this review
period than in previous periods, the scale of those measures is much increased
in terms of their trade coverage and the level of tariffs imposed.
A total of 29
new measures aimed at facilitating trade, including eliminating or reducing
import tariffs, export duties and eliminating or simplifying customs procedures
for exports were also applied by G20 economies. The trade coverage of the
import-facilitating measures implemented during the review period is estimated
at USD 397.2 billion, which is 1.8 times higher than
in the previous G20 Report. At four new trade-facilitating measures per month,
this is the lowest monthly average registered since 2012.
For the first time since the beginning of the trade
monitoring exercise, the number of initiations of trade remedy investigations
by G20 economies is equal to the number of trade remedy actions terminated.
Initiations of anti-dumping investigations continue to be the most frequent
trade remedy action, accounting for more than three-quarters of all initiations.
The WTO trade monitoring reports have been
prepared by the WTO Secretariat since 2009. G20 members are: Argentina;
Australia; Brazil; Canada; China; the European Union; France; Germany; India;
Indonesia; Italy; Japan; the Republic of Korea; Mexico; the Russian Federation;
Saudi Arabia; South Africa; Turkey; the United Kingdom; and the United States.