Geneva - Although various countries worldwide have in the past three months imposed trade restrictions, there were no signs of "high intensity" protectionist measures, World Trade Organization (WTO) Director General Pascal Lamy said Thursday. A total of 119 trade measures have been reported by 24 countries and the European Union to the WTO Secretariat, Lamy said in his third report on trade protectionism since the global economic crisis went into full swing last autumn. Lamy said he regarded 83 of these trade measures as restrictive.
Containing measures that would have caused major trade distortions was done "with difficulties," Lamy said.
He also told WTO members that there was "no general indication yet of governments unwinding or removing the measures that were taken early on in the crisis."
The number of new trade-restricting or distorting measures announced or implemented since March exceeded the number of new trade-liberalizing or facilitating measures by a factor of more than two, the report said.
The largest economies are expected to be hit hardest but conditions for developing nations would continue to deteriorate.
Regarding new stimulus packages, Lamy said he was concerned about the "buy local" provisions in some plans and that certain measures may remain in place after the crisis has subsided, leading to trade distortions.
Trade in services was thought to be weathering the crisis relatively well, though Lamy noted that the "national bias" prevailing in some cases during the downturn could negatively affect outsourcing.
The WTO has revised downward its trade outlook, predicting a decline in volume of 10 per cent, compared to the previously expected 9 per cent drop.
Exports of developed economies are now forecast to fall this year by about 14 per cent while developing economies will likely see a 7 per cent drop and will remain vulnerable to a lack of credit.
