WTO chief calls on EU to end 'spectre' of protectionism

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By Martin Banks
- 24th February 2010
It is imperative that we conclude the talks this year

Pascal Lamy

World Trade Organisation director general Pascal Lamy has delivered a get-tough message to member states: "Make sure trade remains open."

Speaking in Brussels on Wednesday, the former EU commissioner, said international trade had a "crucial" role to play in combating the "spectre" of protectionism.

The French Socialist also appealed for a conclusion this year to the nine-year-old Doha trade talks, saying this would generate "huge" benefits for the struggling world economy.

Efforts to clinch a global trade liberalisation deal were launched back in Doha, the capital of Qatar, in 2001.

The aim is to lower barriers around the world, which allows countries to increase trade globally. Currently talks have stalled over several issues, such as agriculture, industrial tariffs and trade remedies.

The most significant differences are between developed nations, led by the EU, and developing countries, including Brazil and China.

Lamy, who was addressing a European Policy Centre (EPC) breakfast policy briefing, said that concluding the Doha talks would "provide an opportunity for reducing trade barriers and cutting the fixed costs of trading."

"It would also provide, I believe, more certainty in relation to trading arrangements which is particularly important for future economic growth."

Lamy, who is based in Geneva, added, "Let's remember that the Doha talks were launched in a year, 2001, when the world was put to the test (after the attacks on the twin towers in New York) and the world now faces a test of another kind, an economic one.

"That is why it is so imperative that we conclude the talks this year. We have to keep international trade markets open if the world economies are going to come through this downturn."

His appeal, he said, comes at a time of negative GDP growth in most countries and global unemployment of some 200 million.

He also expressed concern at the "spectre" of protectionism saying the "jury is still out" on the effectiveness of economic stimulus packages introduced by some countries, including EU member states.

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