Trade wars

Foreign countries grumbling about provisions of the American stimulus bill that could restrict free trade have been busy putting in place their own obstacles to competition.

"Dozens of measures have been enacted in country after country since early last month, in a scramble by governments to safeguard key industries — often by damaging those of their neighbors," the Wall Street Journal reported.

Since November, Russia has proposed 28 measures either raising import tariffs, including those on cars, or subsidizing its own exports to give domestic manufacturers an advantage.

The European Union, complaining about China dumping screws and bolts below cost, has imposed duties on the imports.

EU restrictions on imports of U.S. chicken and beef have drawn retaliatory U.S. tariffs against Italian water imports and French cheese. And the EU is considering duties against U.S. biodiesel imports in protest of a $300-per-ton export subsidy the U.S. government pays American producers.

The World Trade Organization, which enforces trade agreements, cannot keep pace with the changes. Anti-dumping cases before the WTO have risen 40 percent from a year ago.

Economists say the recent trend does not rise to the level of protectionism that devastated the world in the 1930s, but could prolong the global economic downturn and slow recovery.