MercoPress. South Atlantic News Agency

WTO blasts protectionism and warns global crisis is far from over

Pascal Lamy praised G8 pledge to conclude Doha Round talks in 2010

Warning that the global economic crisis is far from over, World Trade Organization Director-General Pascal Lamy said Monday that protectionism is not the answer to tackling the turmoil.

In remarks to the 153 WTO members Lamy also welcomed the pledge of the G-8 and other nations to conclude the Doha Round of talks next year.

“Although financial markets are showing signs of stabilising, the crisis is far from over, in particular in many developing countries that are only now starting to feel its full force on their trade and economic growth” Lamy said in remarks posted on the WTO website.

He pointed out that at a time when the global economy continues to be fragile there should be a “clear and credible message that protectionism is not the answer”.

Welcoming the recent pledge by leaders of the G-8 and other countries to complete the Doha Round by 2010, Lamy said that there is a “genuine desire to finally bring these talks to a successful conclusion”.

Regarding protectionism, the WTO chief noted there are some signs of improvements as more governments have introduced trade opening and facilitating measures in the last three months.

“This is exactly what is needed from trade policy-makers in current circumstances, to reaffirm their commitment to, and confidence in, open markets. And there is no indication yet of governments more generally unwinding or removing trade-restricting or distorting measures that they imposed early on in the crisis,” Lamy added.

However this does not represent an outbreak of high-intensity protectionism, involving widespread resort to trade restrictions and counter-retaliation.

“We can continue to take heart from the fact that the WTO multilateral trade rules continue to provide a valuable insurance policy against protectionism spiralling out of control. But as long as we continue failing to pay the premiums on that insurance policy, by delaying the conclusion of the Doha Development Round, we are leaving ourselves no room for complacency about the future”, insisted Lamy.