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January 2012

Rise of Non-Tariff Protectionism amid Global Uncertainty

A troubling phenomenon is occurring in large, emerging economies: the gates are closing. Governments, skittish about global economic trends, are introducing new policies to limit imports and exports. The aim is to protect domestic industry in tough times, but the tools they are using threaten to make their economic problems worse.

A December World Bank analysis documents a trend of creeping protectionism in countries such as Argentina, Brazil and Indonesia – all countries with burgeoning industry. Instead of tariffs, other, more indirect policies are being used to hinder free commerce between countries. The Bank analysis, based on World Trade Organization (WTO) monitoring reports and data from the Global Trade Alert, a network of think tanks around the globe, found that the number of non-tariff measures (NTMs) –including quotas, import licensing requirements and discriminatory government procurement rules –showed an increasing trend in the first two years post-2008, and rose sharply in 2011. India, China, Indonesia, Argentina, Russia and Brazil together accounted for almost half of all the new NTMs imposed by countries world-wide.

After the Holidays, a Time to Reflect on the State of Food in Africa

Ian Gillson's picture

As we gather in kitchens and dining rooms during this two-month stretch of eating and charity, let us pause for a moment to review the state of food trade in Africa: how fares cross-border commerce in key crops on a continent with pockets of harsh weather and unpredictable politics? How goes the traffic in grains and tubers?

It’s clear that prices are high, following the February 2011 peak worldwide. The price of maize in Nairobi has tripled this year alone, while the price of a 50 kg bag of rice in Dakar has risen from $36 to $43.50. These spikes can be blamed partly on increased demand for food crops – including for biofuel production in Europe and the US. They are also due to supply-side factors, such higher energy prices which impact transportation and fertilizer costs, and weak harvests in large exporting countries.