Krishna warns of protectionism-led instabilities

New Delhi today cautioned against countries taking protectionist measures to safeguard their economies saying trade barriers can diminish growth and create instability.

"We...need to be cautious about new protectionist measures that impact on trade prospects, either in the name of protecting jobs or introducing environmental standards," External Affairs Minister SM Krishna said while addressing the Commonwealth Business Forum here.

Describing protectionism a "major barrier", he said, "the history of economic development has shown that erection of trade barriers diminishes economic growth and creates instability".

Shrinking exports, he noted, make it all the more important that market access for developing countries is not further constrained by protectionism.

Referring to the Doha Round of trade negotiations, he said India and other developing countries are making significant contribution to the talks. "The developed countries must show the same degree of flexibility so that the Doha Round reaches successful conclusion," he added.