INTERVIEW-WTO says G20 leaders must focus on Doha Round
12 Mar 2009 12:18:40 GMT Source: Reuters
* WTO says poor to be hit hardest by trade contraction * G20 leaders meeting in London must focus on Doha Agenda * Warns protectionist measures will be self-defeating By George Obulutsa DAR ES SALAAM, March 12 (Reuters) - The global economic crisis has made concluding the Doha round of trade talks even more urgent and the negotiations will test G20 leaders to the limit, the World Trade Organisation said on Thursday. The WTO expects world trade to fall 3 percent this year, hitting poor countries hardest. That would be the first annual drop in trade volumes since 1982 and the steepest for 80 years. The International Monetary Fund forecasts that world trade will contract by 5 percent or more in 2009. How to deal with that will be high on the agenda of leaders of the richest nations meeting in London next month. [ID:nLA715782] "The leadership of the G20 will be tested this time," Valentine Rugwabiza, the WTO's deputy director general, told Reuters in an interview after an IMF meeting Tanzania. "The poorest countries, which were not the source of the current crisis ... can't be asked to wait until the developed economies fix their crisis before reverting to the Doha Agenda." Asking less-wealthy nations to hold on under the current circumstances would be "immoral", she said, since slumping trade volumes would mean the reversal of hard-won development gains and millions of people risking a slide back into poverty. The Doha round started in 2001 and was meant to boost global commerce and offer millions of poor farmers and others in developing countries a chance to trade their way out of poverty. Talks have been stalled over the level of agricultural subsidies in some rich nations and the degree to which big developing nations like China, India, Brazil and South Africa should open their markets in farm products and industrial goods. The latest attempt to conclude the round faltered last July. The downturn has led to dwindling demand for commodities like the coffee, cotton and cocoa exports that many African economies depend on. It has also led to a drop in trade finance. Rugwabiza said one possible response to the crisis, especially in Africa, was boosting integration. And she warned that adopting protectionist measures would be counterproductive. "You can't build up regional integration if you increase the barriers for your neighbours. It would be a self-defeating policy with a domino effect," she said. There are some concerns the global crisis could lead to "backdoor protectionism" as some countries spend trillions of dollars to shore up their economies and troubled banks. Rugwabiza also urged donors to maintain their aid pledges. "What is important here is that donors should deliver on their commitments. They have to deliver now," she said. - For full coverage of the IMF conference in Africa, please click [ID:nLB10739] (Editing by Daniel Wallis and Philippa Fletcher)
A farmer plants grass to stabilize sand dunes at the edge of the Mu Us Desert in Lingwu, Ningxia Hui Autonomous Region March 12, 2009. China's environment watchdog said it will ...
