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GLOBAL ECONOMIC CRISIS AND THE DANGER OF PROTECTIONISM: DOES INTERNATIONAL LAW HELP? Sergey Ripinsky∗ “I think it would be a mistake … for us to start sending a message that somehow we’re just looking after ourselves and not concerned with world trade.” Barack Obama, President of the United States of America, Interview with Fox News, 3 February 2009 Introduction The current economic crisis has assumed truly global proportions. Having its origins in the financial market of the United States, it has spread around the world like a bush fire, with most countries now heading into economic recession and volumes of international trade and investment contracting fast. It is predicted that by the end of 2009 world trade flows will have fallen by roughly 9 per cent – the biggest drop in more than 60 years. The financial crisis has had a devastating effect on the banking system, a major pillar of a healthy economy. The resulting liquidity shortages have impacted the real economy; consumer demand, confidence and investment are shrinking everywhere, while unemployment is growing. These extraordinary circumstances have called for increased public intervention in markets. Most governments have been taking urgent measures to stabilise the banking system, through bail-outs and nationalisations, so that the banks could resume their role of providing liquidity and supporting investment in the real economy. Governments have also been providing support to specific industries, especially those dependent on consumer credit, in particular automobile manu