Trade barrier requests fell in late 2009-World Bank

WASHINGTON, Feb 17 (Reuters) - Industry requests for government protection against allegedly unfair foreign trade practices fell during the final three months of 2009 for the first time since the global financial crisis began in mid-2008, the World Bank said on Wednesday in a new report.

But such requests, from industry around the world, still increased nearly 20 percent for all of 2009, following a 35-percent jump the prior year. In addition, the number of new restrictions actually imposed in 2009 under "trade remedy" laws increased 29.5 percent.

"Despite signs that the fourth quarter 2009 could become a turning point for the demands for new trade barriers, the annual data are more sobering," the report said.

A decline in requests for new import restrictions such as safeguard quotas or anti-dumping and countervailing duties suggests protectionist pressures could be easing as the global economy improves.

China was once again the country most frequently targeted by new investigations in the fourth quarter. It faced 15 new investigations and was specifically named in slightly more than 70 percent of new probes.

The United States was hit with three new investigations in October through December, while India, Malaysia, Taiwan and Thailand each faced two new probes.

Developing countries initiated about 77 percent of the new trade remedy investigations, while industrialized nations were responsible for the rest, the report said.

The number of new trade barriers actually imposed in the fourth quarter increased nearly 36 percent.

Despite the drop in new cases in late 2009, countries could continue to impose a number of new trade barriers this year because of a backlog of ongoing probes, the report said. (Reporting by Doug Palmer; Editing by Philip Barbara)