Coronavirus pandemic will cause a ‘much bigger wave’ of protectionism - trade expert

CNBC reports that according to trade expert, governments around the world will turn increasingly protectionist in the near term as they try to limit the economic damage from the coronavirus pandemic.

COVID-19 has already spread to more than 180 countries and territories and caused some countries to restrict exports of medical supplies - that's a decision that could spill into other areas such as food products, said Deborah Elms, executive director at consultancy Asian Trade Centre.

"There is a much bigger wave of protectionism in the near term that we should expect, that is not just in medical supplies ... but it will also start to affect food," she told CNBC.

"As countries get nervous about food stocks and food supply, food security, they're going to stop allowing the export or restrict the import of food products," she added.

As governments seek to protect their economies, they will likely focus on saving their "favored" industries - another way that increased protectionism can play out, said Elms.

"As the economic distress increases, the response by many governments will be to assist favored industries, favored sectors or sectors where they're particularly concerned about catastrophe, especially in jobs. And they will respond, most likely, by pursuing protectionism," she explained.