This presentation looks at issues facing global trade including protectionism policies. Protectionism policies could result in higher taxes due to imposing of import taxes.

1. IS THE WORLD HEADING TO
MORE PROTECTIONISM?
PAUL YOUNG
APRIL 20, 2017

2. PAUL YOUNG - BIO
• CPA, CGA
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• Former Lecturer – CGA Ontario – Public
Finance, Advance Accounting, Finance and
Advance Information Systems
Contact information:
Paul_Young_CGA@Hotmail.com

3. OVERVIEW
• This presentation looks protectionism policies when it comes to merchandise trade.

4. AGENDA
• What is protectionism
• Issues with protectionism
• Top exporting countries

5. TOP EXPORTING COUNTRIES
Source - http://www.worldatlas.com/articles/exports-by-country-20-largest-
exporting-countries.html
FORECASTED GDP GROWTH

6. WHAT IS PROTECTIONISM
• Protectionism refers to government actions and policies that
restrict or restrain international trade, often done with the intent
of protecting local businesses and jobs from foreign competition.
Typical methods of protectionism are tariffs and quotas on imports
and subsidies or tax cuts granted to local businesses. The primary
objective of protectionism is to make local businesses or industries
more competitive by increasing the price or restricting the
quantity of imports entering the country.
• Source - http://www.investopedia.com/terms/p/protectionism.asp

7. ISSUES WITH PROTECTIONISM
• Many countries are receiving pressure at home to create jobs. The problem is that
government cannot create jobs directly as that is up to private sector.
Government has a role and that is to do with policies, like taxation or regulations
or trade/investment agreements with various countries around the world.
• Some countries artificially keep their currency low as part of trying secure foreign
direct investment. Many countries feel these countries that are using labor and/or
currency rates to keep their costs down are not acting fairly as such will look at
counter measure through the form of tariffs/duties.
• Some countries artificially control investment by putting restriction on ownership.
Foreign ownership restriction along with business subsidies can lead to companies
within those countries having an unfair advantage over companies in other
countries.
• Consumers can pay higher prices due to import taxes

8. GLOBAL PROTECTIONISM
Source - http://www.cnbc.com/2017/04/18/imf-raises-global-growth-forecasts-warns-against-protectionism.html
"With persistent structural problems—such as low productivity growth and high
income inequality—pressures for inward-looking policies are increasing in advanced
economies. These threaten global economic integration and the cooperative global
economic order that has served the world economy, especially emerging market and
developing economies, well," the International Monetary Fund said in its latest World
Economic Report.
IMF – CNBC – April 18, 2017

9. PROTECTIONISM – GLOBAL CONSUMER
• Source - http://www.jsonline.com/story/opinion/contributors/2017/04/13/roth-donald-trumps-
protectionist-trade-inclinations-hurt-wisconsin/100413028/
In contrast, hiking taxes on imports — as Trump has signaled — is regressive and
serves to hurt consumers, particularly the working class, by forcing American
consumers to pay higher prices. Whether it is a tariff or the BAT tax, consumers
ought to know that the end result will be higher prices on cars, clothes and
Coronas.
Milwaukee Journal-Sentinel – April 13, 2017