Coronavirus pandemic will cause a 'much bigger wave' of protectionism, says trade expert

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'There is a much bigger wave of protectionism in the near term that we should expect that is not just in medical supplies,' said Deborah Elms, executive director at Asian Trade Centre.

A recovery is expected in 2021, but that depends on the duration of the outbreak and the effectiveness of policies to combat the virus impact, according to the WTO.

As governments seek to protect their economies, they will likely focus on saving their "favored" industries — another way that increased protectionism can play out, said Elms. "As the economic distress increases, the response by many governments will be to assist favored industries, favored sectors or sectors where they're particularly concerned about catastrophe, especially in jobs. And they will respond, most likely, by pursuing protectionism," she explained.

"But for each individual country, that's the solution that makes sense — so restrict trade, focus domestically, keep your own people as employed as you can and then don't worry about anyone else," she added. "But, of course, the net result is everyone else is worse off."

 

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This is a good thing

Good!

As it should.

Thanks to China

Globalism has failed

Countries all over the world will now realize that you can't count on other nations to help in an emergency.

I miss the days of market making tiny moves based on rumors of phase I trade deal with China...

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