Protectionism erased US$2.4b from exports in 2015: Bank of Korea

[SEOUL] South Korea's central bank said on Wednesday that losses suffered because of protectionism moves by other countries in 2015 amounted to US$2.4 billion, equal to 0.5 per cent of Korean exports that year.

The Bank of Korea, in a research report on protectionism, said that from January to September this year, losses will be equivalent to 0.7 per cent of the country's exports for that period.

Protectionist measures such as anti-dumping duties have cropped up mostly in advanced economies like the US and Australia, the central bank said, and have been focused on industries such as steel metals and chemical products.

At the pace at which the measures are widening, annual losses are expected to amount to around 0.8 per cent of annual Korean exports by 2020, the BOK said.

The report advised businesses and the government to make aggressive efforts to minimise the impact of protectionism.

Protectionism in the US is expected to rise during the administration of President Donald Trump, who takes office on Jan 20, but such measures could be weaker than anticipated, the central bank added.

Protectionist views expressed by Trump during his election campaign have spurred concern in South Korea, which is Asia's fourth-largest economy and heavily reliant on shipments for growth.

REUTERS