European Union Trade Commissioner Karel De Gucht urged China, Brazil and India to keep their markets open as the global economic crisis tempts governments to prop up domestic companies using protectionist measures.
“There is much more protectionism that commonly realized,” he said in a Bloomberg Television interview today in Davos, Switzerland. “If it continues, there will be more protectionism with more local champions” and this will cause trade to shrink.
“If we do not take measure to keep world markets open, they are going to close,” De Gucht said. “It will get worse unless there is a fierce reaction” and nations such as China, India and Brazil “should realize they cannot prosper in a world where there is more protectionism.”