WTO's Lamy says not changing 2009 forecast: paper

Fri Jul 10, 2009 3:20am EDT
 
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MILAN (Reuters) - The World Trade Organization is not planning to change its forecast for a 10 percent fall in 2009 global trade, WTO head Pascal Lamy said in comments in Italy's Corriere della Sera newspaper on Friday.

In a Reuters interview on June 24, Lamy said he envisaged a 10 percent fall in trade volumes rather than the previous WTO estimate for a 9 percent fall in 2009.

"In the figures for world trade, I don't see a pick-up even if (there is) a deceleration of the fall," he said.

"We at the WTO are not thinking of changing our forecasts for the fall in world trade after having lowered it from minus 9 percent to minus 10 percent for this year. We leave it there," he said.

Some recent economic data and comments by officials have pointed to tentative green shoots of recovery in the global economy, cheering markets, but the signals have been mixed.

Asked about a rise in the Baltic Dry Index of shipping freight rates from nine months ago, he said this was "a very volatile indicator" depending on Chinese decisions on stocks of raw materials and other Asia factors.

Lamy hailed Thursday's pledge by rich nations and developing powers at a summit in L'Aquila, Italy to kickstart the stalled Doha trade round and complete these negotiations by 2010.

"We have never before seen indications that are so clear on the final date of the negotiations ... (the agreement) of l'Aquila is a clear step forward," he said.

Developing countries depend more than rich countries on trade and thus have a greater fear of protectionism, he said.

Developing nations' trade represents 40-50 percent of their gross domestic product compared to an average of 15 percent for more advanced countries, he said.

Launched in 2001 to help poor countries prosper, the Doha round has stumbled on proposed tariff and subsidy cuts.

(Writing by Nigel Tutt, Editing by Elizabeth Fullerton)

 

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