OECD calls on emerging economies to reject protectionism
The seven major emerging economies should fight against protectionism and further liberalize their economies and trade policy, the Organisation for Economic Cooperation and Development (OECD) said in a report released Thursday.
Brazil, Russia, India, Indonesia, China and South Africa - known collectively as the BRIICS - have reduced many barriers to trade in the last two decades but, the report said, still have more work to do on the "second generation" of reforms, including reducing import tariffs, dpa reported.
The more liberalized parts of these countries' economies have been the best performing sectors, the organization said, and countries with the most open markets "have performed best."
Taking steps to further open their economies would help them emerge stronger from the global economic crisis. The BRIICS would gain more from multilateral free trade, the OECD said, than other trade agreements.
As the BRIICS economies grow, so does their importance to global commerce and trade, the report said, stressing the need for cooperation between OECD members and the emerging countries.
Ken Ash, from the government-funding think tank, said protectionism would only worsen the crisis as it "prevents us from reaching our economic potential."
Presenting the report in Geneva, he said developed nations should also refrain from enacting protectionist moves.