Geneva - The expected contraction of trade volumes this year by 10 per cent presents the largest challenge faced by the international commerce system, World Trade Organization chief Pascal Lamy said Monday. "Global trade growth of 6 per cent in 2007 has been replaced by a projected 10 per cent contraction in 2009. It is one of the biggest challenges that the multilateral trading system has faced since its inception," Lamy said, noting it was impacting particularly severely on the world's poor.
He was speaking at the start of the WTO's second review of the Aid for Trade programme, which was launched in 2005. It aims to help developing countries integrate into the global trading system and cushion any blows from exposing themselves to liberalization.
The WTO members are still negotiating the Doha Development Round of trade talks, which were launched in 2001. Lamy said by next year he hopes to complete the stalled round, which would further open up markets.
United Nations Secretary General said improving trade flows can help mitigate the economic crisis, aiding the poorest.
Infrastructure improvements and better regional cooperation were key to improving trade and economic growth, a joint report by the WTO and the Organisation for Economic Co-Operation and Development said.
Lamy will also announce a liquidity programme later in the two-day review to provide trade financing, which has been drying up along with the credit crunch.
