After repeated pledges by world leaders to avoid erecting trade barriers, protectionism is on the march, provoking nasty trade disputes and undermining efforts to plot a coordinated response to the deepest global economic downturn since World War II.

From a looming battle with China over tariffs on carbon-intensive goods to a spat over Mexican trucks using American roads, barriers are going up around the world. As the recession's grip tightens, these pressures are likely to intensify, several experts said. [The New York Times]

The Declaration of the Summit on Financial Markets and the World Economy issued by the G20 on Nov. 15, 2008, stated that within the next 12 months "we will refrain from raising new barriers to investment or to trade in goods and services, imposing new export restrictions, or implementing World Trade Organization inconsistent measures to stimulate exports."

However, the World Bank pointed out last week since November 17, [countries] have put in place 47 measures that restricted trade. Among them are China which has banned Irish pork, Russia which hiked tariffs on used vehicles, Argentina which imposed tighter licensing requirements on car components, clothing and leather items, India which prohibited Chinese toys, and the U.S. with its "Buy America" provision on the stimulus package. [AHN]

Meanwhile, "China hit out at trade protectionism on Monday, a day after stressing its veto of Coca-Cola's bid for a local company does not mean it is hostile to foreign investment. Vice Finance Minister Li Yong called on the Group of 20 (G20) major economies to reject protectionism at next week's meeting in London, saying it could set back recovery from the economic slowdown.

"Protectionism will seriously dampen the momentum of economic recovery," Li told reporters.

"We call on the G20 to send a signal of opposing trade protectionism." Li was speaking after last week's rejection of Coca-Cola's 2.4 billion dollar bid for Huiyuan Juice triggered fears that China was raising barriers to overseas companies. [Agence France Presse]