The Economist warned us on January 30th.
We have been warned from history.
And now we are repeating the economic madness.
This can plunge the world off a cliff.WASHINGTON — After repeated pledges by world leaders to avoid erecting trade barriers, protectionism is on the march, provoking nasty trade disputes and undermining efforts to plot a coordinated response to the deepest global economic downturn since World War II.
From a looming battle with China over tariffs on carbon-intensive goods to a spat over Mexican trucks using American roads, barriers are going up around the world. As the recession’s grip tightens, these pressures are likely to intensify, several experts said.
The surge in protectionism is casting a shadow over an economic summit meeting of world leaders scheduled for London on April 2. At the last such gathering, in Washington in November, former President George W. Bush persuaded the Group of 20 nations to commit to protecting free trade — whatever the pressures caused by faltering economies and lost jobs.
“No sooner was the G-20 statement issued than it was breached,” said Daniel M. Price, a former Bush administration official who helped negotiate the agreement. “Instead of just talking about trade liberalization, countries need to take immediate steps to show they mean it.”
WASHINGTON (Reuters) - World Trade Organization Director General Pascal Lamy pressed U.S. trade officials on Monday for a strong commitment to finishing the Doha round, while a U.S. business leader warned against accepting a "phony deal" just to wrap up the talks.
Lamy's trip to Washington came as the WTO forecast world trade would fall 9 percent in 2009 due to the shrinking global economy, the biggest fall since the Great Depression and much worse than the 2.8 percent drop the International Monetary Fund forecast in January.
The sharp drop in world trade has increased calls in Europe, Asia and Latin America for a quick conclusion to the Doha round on the basis of texts proposed in December.
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