I. INTRODUCTION The current global crisis-the worst in generations-started off as a financial crisis, but developed into a deep and all-encompassing global recession. The crisis threatens to undo the economic progress achieved by many countries and to erode commitment in the open international trading system. The crisis has affected the real economy, including in such sectors as cotton, textiles and clothing. The contraction in aggregate demand and the disruption in international supply chains have triggered a sharp decline in the volume of goods traded internationally. The sharp reduction and freeze in trade finance, required for moving the majority of traded goods across borders, has magnified this effect. Countries have enacted measures aimed at shielding their own producers-higher tariffs, newly introduced non-tariff measures and anti-dumping investigations. These new trade measures associated with the crisis, have been more a result of the crisis and magnified its effects. They are a danger to the trading system to be avoided in the future.
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