MercoPress. South Atlantic News Agency

OECD ratifies pledge to aid, open trade and investment markets

OECD countries have reaffirmed their commitments on aid to developing countries and undertaken to abstain from trade protectionism, as part of a concerted drive to shore up the world economy and combat recession.

At a meeting of the Organisation's Executive Committee in Special Session, OECD countries agreed on the following trade statement: "We expressed concern that the financial crisis has raised the spectre of new protectionist pressures on governments in OECD countries and beyond. In the interest of strengthening the contribution that open markets can make to a dynamic recovery of the global economy, we strongly support the commitments regarding trade agreed at the Washington Summit, i.e. "within the next twelve months ? [to] refrain from raising new barriers to investment or to trade in goods and services, imposing new export restrictions, or implementing World Trade Organisation (WTO) inconsistent measures to stimulate exports", and to "strive to reach agreement this year on modalities that leads to a successful conclusion to the WTO's Doha Development Agenda with an ambitious and balanced outcome". In parallel, aid donors participating in OECD's Development Assistance Committee responded positively to a call from OECD Secretary-General Angel Gurría and DAC chair Eckhard Deutscher, backed by subsequent recommendations from the G20, for a public undertaking to maintain their commitments to developing countries. In a letter to heads of state and government of OECD countries in October, the OECD Secretary-General and the DAC Chair had expressed concern that there was a risk of the financial crisis becoming an aid crisis as fiscal pressures increase and proposed that donors join together in an "Aid Pledge". In a statement, OECD DAC members confirmed their commitment to an Aid Pledge: "Governments belonging to the Development Assistance Committee reaffirm their aid commitments and agree to maintain aid flows in line with these commitments." The performance of DAC donors against this pledge will be monitored by the OECD Secretariat. Welcoming both commitments, Mr. Gurría said trade and aid have a vital role to play in keeping the world economy moving. "We need to keep markets open while giving help and support to those worst hit by the financial and economic crisis," he said. "These twin agreements represent a significant commitment on the part of governments in the face of an economic slowdown that will lead to sharply higher unemployment in developed countries."