Tensions Contained... for Now

Although the dispute over China's exchange rate regime intensified in the run up to the Seoul G20 Summit pressures for across-the-board protectionist measures have been contained for now. The latest data on protectionism summarised in this Report show that the countries with large current account surpluses have not been targeted unduly in recent months. In addition to presenting statistics on the resort to protectionism by each G20 member this Report highlights three other systemic developments: - An acceleration since the summer in tariff-cutting on machinery parts and components by numerous developing countries. - Even though the G20 countries have avoided a trade war to date they continue to impose protectionist measures at 2009's heightened rates. - G20 countries account for 101 of the 141 protectionist measures that have harmed the commercial interests of the most vulnerable nations namely the Least Developed Countries. Most of that harm is done by the developing country members of the G20. This Report the eighth produced by the Global Trade Alert team will be of interest to analysts government and international officials and scholars in the run up to the Seoul G20 summit and beyond.