Risks of protectionism

French President Nicolas Sarkozy in his time said: "In order to cope with economic recession, there is a need to lower the level of protectionism." However earlier this year, the French Government has provided two French auto giants Renault and Peugeot with the loan worth of 6 billion euros, while obliging them create more working places for French only. As a result the staff of both companies in Eastern Europe has lost their jobs. This act provoked a sharp dispute within the EU. Some economic players in emerging markets and developing economic entities from time to time resort to protectionism.

On the financial summit of the Group of 20 "in London, political leaders again protested against the protection measures, the fulfillment of the promise was not so simple. Former CEO of the World Trade Organization Peter Sutherland said that while the political leaders of the Group of 20 are aware of the risk of protectionism, internal political pressure continues to contribute to the spread of protectionism.

Trade protectionism in one or two countries can not cause the collapse of the world economy, but many states continued adoption of protectionist measures that could lead to serious consequences.

In the end, it would damage the economy of all countries that will be trying to implement protectionist policies. The promotion of trade development plays a key role in promoting global economic growth, and therefore very dangerous protectionism against the backdrop of a significant downturn in world trade.

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