G20 Praised For Keeping Markets Open

In their eighth report to leaders of the G20 nations, the Organization for Economic Cooperation and Development (OECD), the World Trade Organization (WTO) and the United Nations Conference on Trade and Development (UNCTAD) have reported that advanced nations have largely kept their promise to keep markets open by resisting trade protectionism amid high unemployment rates and the weak economic recovery.

According to analysis in the report, during the period May 2012-October 2012, G20 members on the whole continued to honour their commitment not to introduce new restrictive investment measures, and many nations introduced new policies to cut tariff and non-tariff barriers to trade.

According to the report, Brazil, Canada, India, Mexico, Russia and Turkey amended their investment policies, while reducing restrictions to international capital flows and improving clarity for investors.

Twelve G20 members signed bilateral investment treaties or international investment agreements over that period, including Australia, China, Japan, Korea and the European Union.

In 2008, G20 leaders pledged to resist protectionist pressures, in recognition of the benefits of freer trade to the world economy. They mandated WTO, OECD and UNCTAD - the leading international organizations in international trade and investment policies - to monitor developments and report publicly on countries’ adherence to their commitments.

Commenting on the publication of the latest progress report, OECD Secretary-General Angel Gurria said: “The temptation towards protectionism is as strong today as ever with the crisis continuing to undermine our economies. Now more than ever governments must hold firm on their commitments to open and transparent investment. G20 leaders have an essential role to play in revitalizing the multilateral trading and investment system.”

November 2, 2012

Source: Tax News