US Recession May Start Protectionism
Davos, (Switzerland) Jan 26 (Prensa Latina) Fear of a possible economic recession in the United States may lead to trade protectionism, expressed several participants in the Davos Economic Forum.
Risks of protectionism are greater if there is a recession, affirmed Pascal Lamy, director general of the World Trade Organization (WTO). "When the economy slows down there is a greater risk of protectionism" he explained, adding that the danger is obvious.
For his part the Brazilian chancellor, Celso Amorim, warned that protectionism could lead to a world crisis like the one of 1929.
He added that a financial economic crisis may encourage protectionism but history tells us that it ends in a worse crisis.
The Brazilian chancellor called to end the Doha Round, which would be better medicine for the economy. A slowing down of the US economy and the ensuing world financial crisis requires an urgent solution, he added.
The Doha talks begun in the Qatar capital on November of 2001 and are at a stalemate, precisely because of protectionist positions of the United States, the European Union and other rich nations.
Developed countries have refused to reduce their subsidies for agricultural products and exports to the extent demanded by underdeveloped nations.
The Davos Forum, meeting in the Swiss mountains, gathers 2,500 participants from 88 countries including 27 Heads of State and Government and 113 ministers and hundreds of presidents and high officials of the largest companies in the world.
The World Social Forum is meeting at the sa
