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Canada Asks Moscow to Drop Trade Barriers

TORONTO — Canada urged Russia and other G20 countries on Friday to unwind trade barriers erected during the financial crisis as part of a G20 pledge favoring free trade to support the global economic recovery.

Trade Minister Peter Van Loan said in an interview that leaders from the Group of 20 emerging and advanced economies meeting in Toronto should be held accountable for their promise not to adopt protectionist measures, endorsed at the Pittsburgh summit in September.

"So I hope there will be a commitment by countries that are appearing here who have instituted protectionist measures, such as Russia with their tariffs, to actually roll them back and adhere to those commitments," Van Loan said.

When asked about measures taken by others, such as the European Union or the United States, Van Loan said it was more difficult to take countries to task over nontariff trade obstacles.

Russia was high on the list of protectionist offenders spotlighted in a Global Trade Alert report by independent economists last week. Another report by the World Trade Organization covering measures from November 2009 to May 2010 listed 17 new Russian measures blocking trade and 12 measures favorable to trade.

Russia is not a member of the WTO, although Washington has pledged to help it complete the process of accession as soon as possible. That means Russia is not bound by the same rules as the other G20 countries.

The WTO report said the number of new trade barriers globally was falling. Others, including the European Union, have adopted new anti-trade measures since Pittsburgh.

A draft G20 communique dated June 11 said the G20 would pledge to extend a commitment not to raise barriers to investment or trade for three more years, through 2013, and unwind measures erected during the crisis.

That could put the spotlight on the controversial U.S. "Buy American" provision aimed at helping domestic companies participate in stimulus projects.

But Van Loan said he did not expect leaders to go much further than upholding previous commitments on trade.

"I don't expect a big change from what's been discussed in advance on the trade front," he said. "My expectation is you'll see general wording along the lines of resisting protectionism and opening trade opportunities."

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