Daniel Ikenson, author of "No Longer Us versus Them - Trade Policy For the 21st Century", released today by the Freedom to Trade Coalition, calls on the G20 to stick to their pledge not to introduce protectionist policies:

"In one breath, governments renounce protectionism; in another they introduce such policies. This shows a profound lack of understanding of the new reality of global commerce. Today’s competitors defy national identification.  A product might be designed by teams in the USA and India, have components produced in Thailand, Poland and Mexico, while final assembly takes place in China, from where it is distributed to millions of consumers around the world.  As a result, restrictions intended to benefit one domestic constituency harm all other collaborating partners in that supply chain – and hurt other domestic producers too."

IPN Project Director Alec van Gelder adds:

“Trade barriers are economic suicide. They lead to inefficient, wasteful, environmentally damaging production – and destroy jobs. Policies such as ‘Buy American,’ Britain’s local lending requirements and similar protectionist policies are counterproductive: they isolate and undermine economies that rely on globally integrated production and supply chains. If governments care about the welfare of their people, they should eliminate trade and investment barriers now.”

Click here for the rest of the press release, and here for a copy of the report.