WTO warns global trade will shrink by 9%
24-03-2009
Global trade flows are set to shrink by 9 percent during 2009, according to a forecast by the World Trade Organization.
Hardest hit will be developed nations, where trade is set to fall 10 percent.
Poorer countries will see exports fall 2-3 percent. The WTO blames the deepening recession for the downturn, but says trade could be "a potent tool" for recovery.
It would be the biggest drop in trade since World War II, said WTO Director-General Pascal Lamy, who called on global leaders to fight protectionism.
Trade is one of the top issues on the agenda when the heads of state and government of the world's leading economic powers meet at the G20 summit in London on April 2.
"In London G20 leaders will have a unique opportunity to unite in moving from pledges to action and refrain from any further protectionist measure which will render global recovery efforts less effective," said Mr Lamy in the organisation's annual assessment of world trade.
He warned that the use of protectionist measures was on the rise, with dangerous consequences: "Many thousands of trade related jobs are being lost.
governments must avoid making this bad situation worse by reverting to protectionist measures which in reality protect no nation and threaten the loss of more jobs."
