Abstract:
Despite neutering the official monitoring of protectionism, unmistakable evidence
assembled from state sources demonstrates that G20 members routinely violate their
“no protectionism” pledge. The scale of trade affected should concern senior officials:
by March 2018 over 80% of G20 goods exports competed against trade distortions
implemented since November 2008 that were still in force. That percentage falls
to 30% if export-related trade distortions are set aside, a total that excludes as yet
unimplemented recent high-profile import restrictions.
Concerns that the current G20 approach does not address the full range of policy
intervention that distort 21st century commerce should be addressed by Leaders
taking two steps: expanding the scope of the G20 protectionist pledge and calling
for upgraded monitoring.
Rather than engaging in another fruitless debate about what constitutes protectionism,
a principle-based approach should be pursued. G20 Leaders should adopt text that
condemns any discriminatory policy intervention, unless a widely-accepted exception
is invoked that is justified by evidence, least distortive, implemented only after
completing established procedures, and subject to timely review.
G20 Leaders should also adopt text calling on relevant international organisations to
redouble their monitoring efforts in line with this principle-based approach and to
improve substantially their coverage of the services and intangible economies.
