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Interview: Trade protectionism no longer protects countries: WTO chief

(Xinhua)

10:24, October 19, 2011

GENEVA, Oct. 18 (Xinhua) -- Due to globalized supply chains, trade protectionism no longer protects countries, the director-general of the World Trade Organization (WTO) Pascal Lamy told Xinhua in an exclusive interview on Tuesday.

Lamy said he believed protectionism is neither a remedy for unemployment nor an effective way of boosting demand during an economic downturn.

"If you hit your imports, in reality you also hit your exports," the WTO chief said, adding that protectionism should be avoided, especially in times of economic crisis.

While there is no evidence of major trading nations introducing sweeping protectionist policies, Lamy warned "the risk is there" and reminded that countries need "to be very vigilant."

China joining the WTO almost 10 years ago not only forever changed global trade patterns, but also many things in the WTO itself, he said. "The organization made a big step forward when China joined," Lamy remarked.

"What many people do not always realize, because they are very much focused on how much China exports, is how much China imports," he added. China's imports have grown at an average of 20 percent a year for the past ten years, which according to Lamy, "is an enormous change."


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