The North American investment industry is warning the G-20 finance ministers on the dangers of protectionism.

The Securities Industry and Financial Markets Association (SIFMA) and the Investment Industry Association of Canada (IIAC) issued a joint statement Friday concerning this week’s G-20 finance ministers meeting.

“Protectionism and economic nationalism were among the leading factors contributing to the length and severity of the Great Depression in the 1930s,” said Tim Ryan, president and CEO of SIFMA.

“We believe it is critical that G-20 members avoid regulations that have an adverse impact on other countries, and commit to a standstill on any new barriers,” Ryan added.

“Where new regulatory actions are deemed necessary at the national or international level, they should be crafted to guard against the dangers of protectionism,” said Ian Russell, president and CEO of IIAC.

“It is essential that G-20 members work towards consensus on approaches to achieve consistent and efficient regulatory standards to promote well functioning global capital markets and to avoid the unnecessary burden of negotiating a maze of differing regulations,” Russell said.

The G-20 leadership will meet in London on April 2, to discuss the global financial crisis.

IE