India next to US in anti-dumping measures: World Bank

Washington, Mar 9 (PTI) With protectionism emerging as a
major threat to the global trade flow, data compiled by World
Bank shows that India is next only to the US in terms of new
anti-dumping measures imposed by their respective governments.

Besides, the number of such measures increased
substantially in the second half of 2008 in both countries,
World Bank has said in its background paper for the G20
Finance Ministers and Central Bank Governors Meeting later
this week in the UK.

The US imposed over 20 new anti-dumping measures during
the July-December period in 2008, followed by 15 such measures
by the Indian authorities.

As per the data compiled by the multilateral lending
agency, India took more than 10 fresh anti-dumping measures
in the first half of 2008 -- higher than any other country
during that period -- while the US imposed less than five such
measures.

Other countries where new anti-dumping measures are on
the rise include Brazil and Canada, while European Union,
South Korea and Egypt saw the number of such initiatives
declining in the second half of 2008.

China, South Africa, New Zealand and Argentina had
imposed some fresh measures in the first half, but no
additional steps were announced in the second half. In
contrast, Australia and Turkey did not impose any new
anti-dumping measures in the first half of 2008, but some
steps were announced in the last six months of the year.

"Protectionism remains a serious threat in the current
environment. Many countries are contemplating, or have already
implemented, increased protection, which may be difficult to
reverse and will slow the recovery," the World Bank said.

According to the World Bank, since the beginning of the
financial crisis, roughly 78 trade measures have been proposed
or implemented, of which 66 involved trade restrictions.

"Of these, 47 measures were actually implemented,
including 17 by the G20. In addition, anti-dumping claims
and actions increased 20 per cent in 2008 relative to 2007;
and 55 per cent in the second half of 2008 relative to the
first half of 2008," it added.

The World Bank pointed out that agricultural subsidies,
"not counted in these numbers", have increased automatically
with the recent fall in commodity prices.

"In addition to changes in tariffs, non-tariff barriers,
such as licensing requirements and tighter application of
product standards, are also being introduced.

"Governments are also taking measures to support specific
industries through potentially trade distorting measures,
including by increasing subsidies as part of fiscal stimulus
packages," the paper said.

Further, the multilateral lending agency noted that while
government's financial support packages do not necessarily
distort trade, "public intervention targeted at specific
export-oriented industries or competing import industries are
akin to protectionism and run the risk of starting a subsidy
race among nations".

The paper added that there is also a risk that
governments providing "bailouts" to domestic banks might exert
pressure on those banks to use "those resources within their
countries rather than to provide trade finance that would go
to foreign countries". PTI RAM