It is reported that governments around the world are strengthening protectionism to boost their own economies, a big blow to exporting nations such as Korea and the petrochemical and steel industries are likely to be hit hardest by the moves.

Mr Jung Ho sung research fellow at Samsung Economic Research Institute said that "A steep rise of tariffs such as the ones seen during the Great Depression is not likely. However, indirect protectionist measures such as supporting local business on the pretext of boosting the domestic economy or setting up non tariff barriers with regard to the environment or technology could be bolstered.''

Mr Jung estimated that Brazil, Russia, India, the European Union and China will bolster protectionism measures stronger than others. He added that "Brazil, Russia and India, which tend to pursue protectionism, are likely to raise the barriers further, facing intensifying protectionism from developed countries.''

Among the various industries, Mr Jung said that petrochemical and steel industries would face the most severe protectionism. He added that "In petrochemical industries, oversupply by emerging countries such as China has become a serious problem, following massive facility investment.''

According to research by Gary Hufbauer and Jeffrey Schott, around 1,000 jobs will be created in the US steel industry to meet domestic demand for economic stimulus projects. However, as other countries close 1% of their markets to US exporters in retaliation, around 6,500 jobs in the US would disappear.

(Sourced from www.koreatimes.co.kr)