Sharing concerns of India and other developing countries, the World Trade Organization (WTO) today said protectionism was a major concern and expressed confidence that a deal on opening world trade further was possible this year.
“We need to remain vigilant. With unemployment remaining high, protectionist pressures are a worry,” WTO Director-General Pascal Lamy said.
His comments, incidentally, coincide with US President Barack Obama heightening the pitch to protect American jobs in the wake of employment losses due to outsourcing to developing countries like India. Obama said it was time to end tax breaks to American companies that outsourced jobs overseas, while helping those that created employment within the US.
Lamy said the international trade body would continue to keep a close watch on protectionist measures that impeded international free trade. “We at WTO secretariat will continue monitoring these developments through 2010,” he said.
India and several emerging economies like Brazil have raised concern over protectionist measures in the West, especially after the global financial crisis.
The stance against protectionism got support from South Korea, with its President Lee Myung-bak saying: “The G-20 Summit had played a pivotal role in resisting protectionist pressures and we need to reaffirm the importance of continuing our stance against protectionism”.