18 November 2008

World Leaders Pledge No New Trade Barriers to Help Speed Economic Recovery

This article is excerpted from the 18 November 2008 edition of “WorldTrade Interactive”.

At a summit held in Washington, D.C., Nov. 15 on how to address the global economic crisis, leaders from 20 countries indicated that trade is an important part of their effort to stabilize financial markets and support economic growth. The G-20 leaders spoke out against protectionism, pledged to avoid additional trade barriers and called for the completion of the Doha Round negotiations.

In a declaration issued at the conclusion of their meeting, the leaders asserted that free market principles and open trade and investment regimes ”foster the dynamism, innovation, and entrepreneurship that are essential for economic growth, employment, and poverty reduction,” and they emphasized “the critical importance of rejecting protectionism and not turning inward in times of financial uncertainty.” To that end they pledged that over the next 12 months they will “refrain from raising new barriers to investment or to trade in goods and services, imposing new export restrictions, or implementing World Trade Organization (WTO) inconsistent measures to stimulate exports.” This step was recommended by business groups from a number of countries in a Nov. 14 letter to G-20 members.

The leaders also instructed their trade ministers 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.”…