Trade Protectionism: An Increasing Threat to Global Economic Recovery

Unlike the Great Depression of the 1930, the Great Recession of 2008-2009 did not trigger a massive wave of protectionism as expected. Nevertheless, numerous countries have adjusted their trade policies during the financial crisis to mitigate its negative effects. Despite the widely shared view that crisis-related protectionism has been limited and kept under control by the WTO’s multilateral rules, available date provide clear evidence on the quite notable increase in the number and incidence of the newly introduced trade restrictive measures. Starting from a brief overview of the current situation in the global economy, the paper highlights the main trends in the recent evolution of trade protectionism. It takes stock of the trade restrictive measures as evidenced by the monitoring exercises carried out globally, with a view to outline the peculiarities of contemporary protectionism and address, finally, its outlook and potential implications.