World must step up efforts to counter protectionism: Germany
Press Trust of India / New Delhi Feb 02, 2010, 19:12 IST
Sharing concerns of India and other developing countries, Germany today opposed increasing protectionist measures taken by some countries in response to global financial crisis.
Addressing Indian businessmen here, German President Horst Kohler said the world community has to enhance their efforts to counter protectionist tendencies.
"The world must continue to take decisive action to counter such (protectionist) tendencies," Kohler said at the function organised by industry body CII and FICCI.
Without naming any nation, Kohler said that many countries are adopting protectionist approach to stem the global financial meltdown.
The President's comments, incidentally, coincide with US President Barack Obama heightening the pitch to protect American jobs in the wake of employment losses due to outsourcing to developing countries like India.
The German President said: "We saw, how in many countries protectionist tendencies increased as a reaction to the (global financial) crisis, even though this will ultimately be to the detriment of everyone".
Following the collapse of Lehman Brothers that deepened the global financial meltdown in October 2008, many developed countries turned cautious and some have even adopted protectionist steps to safeguard their economies.
Last week, President Obama had said that it was time to end tax breaks to American firms that outsourced jobs abroad, while helping those that created employment within the US.
India and several emerging economies like Brazil have raised concern over protectionist measures in the West, especially after the global financial crisis.
Kohler, who would also travel to Mumbai and Pune, is on a six-day visit to India.
Trade between India and Germany stands at about $19 billion in 2008-09.
According to FICCI, there is potential to increase the two-way trade by 20 billion euros (about $30 billion) by 2012.
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