DAVOS: Key trade ministers agreed on Saturday to step up efforts to reach a new global trade deal and guard against protectionism to help pull the world out of economic crisis.
With the world economy in its worst state since World War Two, ministers met on the sidelines of the World Economic Forum in the Swiss ski resort of Davos and agreed keeping trade open was a central element in any solution to the crisis.
It is very clear that we have to be better at communicating the message to all the people across the world that in order to come out of the economic downturn we need to keep trade open, European Union Trade Commissioner Catherine Ashton said.
Ministers from 17 economies plus the 27-member EU said completing the World Trade Organization s long-running Doha round to open up global trade was their top priority, and progress in 2008 meant remaining gaps could be closed this year.
But they did not agree on a date for ministers from the 153- member WTO to seek a breakthrough, not least because the new US administration does not yet have a confirmed trade representative, which some felt weakened Saturday s meeting.
Countries such as Egypt and Switzerland favor bringing ministers together before the next summit of G20 rich and emerging countries in London in April, which wants to settle on clear actions for tackling the economic and financial malaise.
But Brazil s foreign minister, Celso Amorim, one of the strongest supporters of a deal, said it would not be useful to have a full meeting of ministers in the first half of the year.
Egypt s Minister of Trade and Industry Rachid Mohamed Rachid said Sunday that there was no good news on the Doha trade round from the latest meeting of global trade ministers, Bloomberg reported.
Speaking at the World Economic Forum following a meeting of trade ministers Saturday, Rachid also said the US position was a challenge.
Biggest stimulus
The Doha round was launched in late 2001 to open up trade in food, in goods from cars to chemicals, and in services like banking and telecoms, and help developing countries trade their way out of poverty. But agreement has proved elusive in the seven years since then as countries haggle over the details.
Economists disagree about how much a deal would boost the world economy by, but it would stimulate output by creating new trade opportunities.
The Doha round will be the biggest stimulus package ever, said Swiss Economy Minister Doris Leuthard.
A deal would also prevent countries raising new barriers against imports – even measures allowed under current WTO rules – which could deepen the crisis, as happened in the 1930s.
Already trade has slowed sharply, with the United States, China and Germany all reporting steep falls in exports and air cargo volumes dropping by nearly one fifth in December.
The only antidote against this disease of protectionism … is to conclude the round quickly, said Brazil s Amorim.
Business leaders at the Davos forum agreed.
We cheer em on. We believe in free trade. So anything that s going to move that forward, that s a good thing for business, said William Amelio, CEO of Chinese computer maker Lenovo.
Fears that protectionism could worsen the crisis have prompted the WTO to monitor trade measures by its members and report them regularly, a move applauded by the ministers.
In recent months several countries have raised tariffs and subsidies, while a spate of multi-billion dollar stimulus packages and bailouts are also under scrutiny to see whether they discriminate against foreign businesses. -Additional reporting by Barbara Lewis, Ben Hirschler, Emma Thomasson, Jason Subler and Lisa Jucca.
