March 19 (Reuters) - The world economic crisis has
encouraged many countries to take steps to support their
economies or individual industries, despite fears that
protectionism could deepen recession.
Here are some of the measures taken by countries to bolster
domestic industries that have been criticised as protectionist:
UNITED STATES - A $787 billion U.S. stimulus package, signed
by President Barack Obama last month, was criticised for its
"Buy American" clause that says firms must use U.S. steel and
other U.S.-made goods.
-- The bill provided for a 25 percent competitive margin for
US iron and steel for all expenditures under the bill. Several
governments, including Canada and the EU objected to the
provisions. A final provision also includes language that
requires the U.S. to implement the provision consistent with its
trade commitments.
-- A $17.4 billion lifeline to two Detroit carmakers was
announced on Dec. 19.
-- On Feb. 17, GM and Chrysler requested a further $22
billion in U.S. government loans as they submitted plans with
the government on how they could restructure.
ARGENTINA -- Imposed licensing requirements on products such
as auto parts, textiles, TVs, toys, shoes, and leather goods.
BRITAIN - Energy workers staged protests in across Britain
in a row over the use of imported labour from other EU
countries, saying that they were undercutting British pay rates.
-- The EU's internal markets commissioner has said some
European countries were "very upset" about sterling's recent
losses, which makes British exports more competitive on price.
-- Britain announced in January it would guarantee up to 2.3
billion pounds ($3.29 billion) of loans to the car industry
CHINA -- Frequent target of complaints that it blocks access
to its markets or gives unfair help to exporters, including by
keeping its yuan currency weak. The last meeting of G7 finance
ministers in Rome praised Beijing for allowing some appreciation
of the yuan but maintained calls for the process to continue.
-- China has put in place an import ban on Irish pork, as
well as a rejection of some Belgian chocolate, Italian brandy,
British sauce, Dutch eggs and Spanish dairy products.
-- China on Wednesday rejected a $2.4 billion bid by
Coca-Cola <KO.N> for China's top juice maker, Huiyuan Juice
<1886.HK>, blocking what would have been the largest-ever
takeover of a Chinese company by a foreign rival. The Ministry
of Commerce made the ruling on grounds that the merger would
have been bad for competition. However, the ruling has fanned
concerns that economic nationalism is on the rise in China.
-- European lobby group BusinessEurope cites changes to VAT
rebate system to promote exports and restriction of raw material
exports as areas of concern.
ECUADOR -- Raised tariffs on 940 products including butter,
turkey, crackers, caramels, blenders, cell phones, eyeglasses,
sailboats, building materials and transport equipment.
EUROPEAN UNION - Imposed anti-dumping duties on Chinese
screws, fasteners, candles and steel wire products.
-- Reinstated export subsidies on dairy produce.
-- Imposed steep anti-dumping and anti-subsidy duties on
imports of biodiesel from the United States.
FRANCE -- Pledged loans of 6 billion euros ($7.6 billion) to
struggling car makers PSA Peugeot Citroen <PEUP.PA> and Renault
<RENA.PA> (3 billion euros each) in return for what has been
characterised as an unwritten pledge not to close facilities in
France. The European Commission has said it is satisfied the
guarantees do not amount to protectionism.
INDIA -- Raised tariffs on some imported steel products.
Banned imports of Chinese toys for six months, saying it was in
the interest of public safety.
-- Also increased rebates under the duty drawback system for
exporters.
INDONESIA -- Plans to order its nearly four million civil
servants to use local products ranging from footwear to heavy
machinery. Officials denied the measures would be protectionist.
Limited the number of ports and airports serving as entry points
for certain imports, such as electronics, garments, toys,
footwear, and food and beverages.
ITALY -- Unveiled a $1.7 billion package for its car
industry. Carmakers in turn have been told to maintain their
plants in Italy and pay auto parts suppliers.
MALAYSIA -- In January Malaysia banned the hiring of foreign
workers in factories, stores and restaurants to protect
its citizens from mass unemployment.
MEXICO -- Angered by Washington's move to block Mexican
trucks from using U.S. highways, Mexico said on Monday it would
raise tariffs on 90 American agricultural and manufactured
products, about $2.4 billion worth of exports from 40 U.S.
states.
RUSSIA -- Raised duties on imports of used cars to prop up
its struggling domestic industry.
-- Set a new seasonal import tariff on rice of 160 euros
($202.4) per tonne from Feb. 15 to May 15, 2009 to protect
domestic producers.
SPAIN -- Approved a 4 billion euro ($5.17 billion) package
to support its ailing car industry. The support would depend
upon carmakers' ability to guarantee jobs and would not grant
aid to any company that has laid off workers permanently without
first reaching agreements with unions.
Sources: Reuters; tradeobservatory.org; BusinessEurope;
World Bank
(http://siteresources.worldbank.org/NEWS/Resources/Trade_Note_37.pdf)
(Writing by David Cutler, London Editorial Reference Unit;
Additional reporting by Carl Bagh, Keith Weir and Jijo Jacob)
