25 September 2008

Economic crisis shouldn't derail trade talks

The following was reported on in the 24 September 2008 edition of “Journal of Commerce”.

Pascal Lamy, director-general of the World Trade Organization, said today that the growing banking crisis in the United States should not undermine efforts to open up the global economy.

Lamy said that the most important lesson from the Great Depression that followed the U.S. stock market crash of 1929 was that protectionism is economically harmful.

“The current hurricane that has hit the financial markets must not distract the international community from pursuing greater economic integration and openness,” Lamy told a public forum at the WTO.

“In a financial crisis and at a time of economic distress, in particular at a time of soaring food prices, what impoverished consumers desperately need is to see their purchasing power enhanced and not reduced,” Lamy said.

He added that it was important to complete the Doha Round of WTO-sponsored multilateral trade talks begun in 2001, which aim to open global markets further and promote economic development among the world’s poorest countries.

Lamy said WTO diplomats were still attempting to forge the outlines of a deal about agricultural subsidies and industrial tariffs by the end of this year.