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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.

Shoe molds and scuba divers: How natural disasters affect our supply chains

Thomas Farole's picture

A scuba diver in Mexico. Source: http://www.flickr.com/photos/akumaldiveshop/5824559898/sizes/m/in/photostream/Like the massive earthquake in Japan earlier this year, the floods in Thailand are again exposing the vulnerabilities of fragmented global supply chains.

Last month, a team of economists from PREM's International Trade Department encountered some flooding side-effects during a visit to the Indonesian production site for ECCO, a Danish company that manufactures footwear. The news from Thailand: the ECCO production site there was under three meters of water, a problem for shoe-making. In order to transfer production to the factory in Indonesia, the workers needed the specific shoe molds used in the Thai factory. These specialized molds would have taken several weeks to manufacture, which would have further delayed production. So ECCO hired scuba divers to enter the Thai factory and recover the molds. They then shipped them via air to other factories around the region, including ECCO Indonesia.

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