Lee warns of fallout of trade protectionism

SEOUL, Feb. 23 (Yonhap) -- President Lee Myung-bak on Monday reiterated his
opposition to trade protectionism, warning a resurgence of protectionist policies
in trade and financial services will only aggravate the global economic crisis.
Lee made the remark during his meeting with Pascal Lamy, director-general of the
World Trade Organization, who is visiting South Korea to attend an international
seminar on the future of the Korean economy.
"Countries across the world are now competitively displaying a tendency toward
trade and financial protectionism in order to protect their own industries. But
such a tendency will only deepen the worldwide economic slump," said Lee.
Lee noted that the next Group of 20 summit, set to take place in London in April,
should pave the ground for concrete discussions regarding the so-called
"stand-still" initiative that bars erecting new barriers to trade and investment.
Lamy agreed to Lee's view, stressing the G-20 summit should serve as a new
opportunity to establish the principle of free trade and heighten confidence in
the global economy and international cooperation, according to the presidential
spokesperson.
During the first G-20 summit in Washington last November, Lee urged global
leaders not to repeat the "beggar-thy-neighbor policies" of the Great Depression
days in order to bring about a speedy recovery from the ongoing financial crisis.
Beggar-thy-neighbor policies refer to international trade regimes that emphasize
competitive devaluations and increased protective barriers that a country
institutes to gain at the expense of its trading partners.
ycm@yna.co.kr
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