Report on G20 Trade Measures

Trade policy restraint by G20 economies, as well as WTO members more broadly, prevented a destructive acceleration of protectionist trade measures that would have further hurt the world economy, according to the WTO’s latest Trade Monitoring Report. But WTO Director-General Ngozi Okonjo-Iweala cautioned that obstacles to trade remain in place and continue to undermine global efforts to increase and diversify the production of vaccines.

The WTO’s latest Trade Monitoring Report on G20 trade measures shows a slowdown in the number and coverage of trade-restrictive and trade-facilitating measures on goods implemented by G20 countries between mid-May and mid-October 2020, primarily as a result of the sharp decline in overall global trade since the COVID-19 outbreak. The report also documents numerous trade-facilitating and support measures introduced by G20 economies in response to the economic downturn in order to prepare the ground for a strong economic recovery.

The WTO’s new Trade Monitoring Report issued on 21 November shows that G20 economies from mid-May to mid-October 2019 introduced import-restrictive measures covering an estimated USD 460.4 billion worth of traded merchandise. This represents a 37% increase over the previous period going back to mid-October 2018, and is second only to the USD 480.9 billion coverage of import-restricting measures reported between mid-May and mid-October 2018. The report notes that with restrictions accumulating over time, the share of global trade covered by such measures has soared. WTO Director-General Roberto Azevêdo called on G20 economies to de-escalate trade tensions to spur investment, growth and job creation.

The WTO’s 20th monitoring report on Group of 20 (G20) trade measures issued on 22 November shows that the amount of trade covered by new import-restrictive measures hit a new high during the current reporting period. The estimated US$ 481 billion in trade coverage of these new measures imposed by G20 economies from mid-May to mid-October 2018 is more than six times larger than that recorded in the previous reporting period and the largest since this measure was first calculated in 2012. The report also shows that the trade coverage of new import-facilitating measures (US$ 216 billion) rose significantly during this period but is less than half that of trade-restrictive measures. WTO Director-General Roberto Azevêdo warned the report’s findings constitute a source of serious concern and called for immediate action to de-escalate the situation.

G20 countries show restraint in new trade restrictions, despite economic uncertainties: The WTO’s eighteenth monitoring report on Group of 20 (G20) trade measures, issued on 9 November, shows that G20 economies introduced fewer trade-restrictive measures compared to the previous review period. The estimated trade coverage of these restrictions recorded during the period of mid-May 2017 to mid-October 2017 slightly exceeded the coverage of trade-facilitating measures.

G20 trade restrictions reach highest monthly level since the crisis: The WTO’s fifteenth trade monitoring report on G20 trade measures, issued on 21 June, shows the application of new trade-restrictive measures by G20 economies increased compared to the previous reporting period, reaching the highest monthly average registered since the WTO began its monitoring exercise in 2009.

WTO sees “slight deceleration” in G20 trade restrictions but calls for continued vigilance: The WTO’s thirteenth trade monitoring report on G20 trade measures, issued on 15 June, shows a slight deceleration in the application of new trade-restrictive measures by G20 economies, with the average number of such measures applied per month lower than at any time since 2013. The report also underlines that it is not yet clear that this deceleration will continue and it calls on G20 leaders to show continued vigilance and reinforced determination towards eliminating existing trade restrictions.

Azevêdo reports trade restrictions down slightly, urges G-20 leadership on post-Bali agenda: The WTO’s report on G-20 trade measures, issued on 18 June 2014, said that “G-20 members put in place 112 new trade restrictive measures during the period mid November 2013 to mid-May 2014 — slightly down from the 116 new restrictive measures introduced in the previous period from mid-May to mid-November 2013”. Director-General Roberto Azevêdo said that “ it is clear that the coat of trade restrictions has grown a bit thicker over this period…this will not help our efforts to support growth and development around the world — and therefore we must remain watchful”.

WTO warns G-20 trade restrictions continue to accumulate as pace of removal remains slow: Director-General Pascal Lamy, in his report on G-20 trade measures issued on 17 June 2013, said that “more than 100 trade-restrictive measures were implemented by G-20 economies over the past seven months, covering around 0.5% of G-20 merchandise imports”. He called on the G-20 to “take positive steps to unlock the potential for trade to grow stronger by ensuring a successful outcome at the next Ministerial Conference in Bali”.

Joint study: restrictive measures continue apace, accrued restraints hit 3% of imports: The seventh WTO-OECD-UNCTAD report for the G-20 on trade and investment restrictions reveals that government-imposed trade and investment restrictions have not slowed and that the pace of removing such obstacles has decelerated. The accumulation of such restraints means that nearly 3% of global imports are affected while the restrictions now impact nearly 4% of G-20 trade.