Completing the Doha Development Agenda would represent the most effective global stimulus package, says Pascal Lamy, head of the World Trade Organization.

In a meeting of the Trade Policy Review Body on Tuesday, WTO director-general Lamy applauded the G20 consensus to avoid protectionism and support global trade flows with assistance to finance trade. “The G20 commitment to provide US$ 250 billion for trade finance demonstrates the capacity of the international community to address urgent global needs by helping to restore trade as an engine of economic growth,” he said.

And, he warned against incremental protectionism, which has become evident since global economic conditions have worsened. “The main risk is that governments will continue to give way to protectionist pressures, even if only gradually and temporarily, as long as the global economic situation continues to deteriorate. This would affect all countries. But developing countries, reliant on exports to drive growth, would be hardest hit should governments move to restrict trade as a way of surviving the global crisis,” he said.

“The best contribution to reviving economic growth around the world is to conclude the [Doha agreement] as one of the most appropriate collective stimulus packages. An ambitious and balanced conclusion to the Doha Development Round, which is needed now more than ever, could result in tariff cuts of at least US$150 billion per annum, which could directly benefit the consumers. And as I have said many times, completing the DDA is also the surest way we have of safeguarding our individual trade interests and the multilateral trading system against the threat of an outbreak of protectionism,” he added.

IE