WTO Director General Calls for Multilateralism
Lamy says the major players stand up for the values of multilateralism.
Compiled by staff
Published: Dec 15, 2011
At the opening of the 8th Ministerial Conference in Geneva, World Trade Organization Director General Pascal Lamy told the meeting that major players need to exercise leadership and muster political courage to act together for greater trade opening and reform. He asked the membership to stand up for the values of multilateralism and place the interests and needs of developing countries at its heart.
"The year 2011 will be remembered for its turbulence and instability," Lamy said. "When we thought we had turned the corner from the 2009 economic crisis, the outlook for the world economy seriously worsened. High volatility in financial markets and sovereign debt concerns have damaged business and consumer confidence. Global growth is stuttering across nations and, as a result, trade is slowing down. Unemployment remains at unacceptably high levels. The development gains made in recent years are disappearing."
Lamy went on to say that citizens from across the globe have taken to the streets to demand stability, fairness, accountability and are demanding solutions to address the challenges of our interconnected world.
"As trade has contracted, the multilateral trading system has provided an anchor for national trade policies," Lamy said. "It has helped moor them to our values of openness, non-discrimination, transparency and rule of law. But the strong storm waves are loosening the anchor and now risk dislodging it. This would be very bad news. The cost to the world economy of high intensity protectionism would be in the order of $800 billion, the estimated value of space or "water" in WTO commitments today."
Lamy told the conference that multilateral trading is at a crossroads where it must advance in the spirit of shared values and cooperation or face a retreat from multilateralism.
"Waiting for better times will simply not suffice," Lamy said. "A consensus for inaction would simply mean a consensus for more pain for all."
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