WTO Leader Speaks on Value of Global Trade
Talking to officials in Malaysia Director-General Pascal Lamy, highlights the value of trade and the threat of trade protectionism.
Compiled by staff
Published: Aug 20, 2007
Malaysia has seen the benefits of open world markets as its economy has grown in recent years. In that country last Friday, World Trade Organization Director-General Pascal Lamy talked to a group in Kuala Lumpur about the value of moving ahead on the global trade front. He also identified his worries over what might happen if the world doesn't move forward on the global trade front.
In his talk, Lamy identified three "big issues" facing world trade today. First, is the challenge of opening up markets globally, versus the risks of trade protectionism. He says the first issue concerns international policies and "whether countries choose to continue to open up their markets or to restrict imports will have global implications."
Second, he points to domestic policies in a global market. "The lack of appropriate domestic policies to ensure that the benefits of trade are evenly distributed might end up affecting the general public's support for more open trade," he says.
And third, he says there are concerns about how trade opening should take place including whether that should be done multilaterally, through bilateral free-trade agreements or regional integration.
Lamy notes that he is convinced that raising trade restrictions is "surely not part of the answer to anxieties generated by the rapid pace of globalization," he notes. "The damage that this would create would be unthinkable. More often than not, the real cause of pain is not so much trade, but failure to accompany the efficiency gains of trade opening with other economic policies that would underwrite the beneficial impact of opening up to foreign competition."
In his talk, Lamy noted that Malaysia would see substantial benefits if a successful Doha Round were negotiated. He added that Malaysia's agriculture would see positive results as well including a wider market for the country's palm oil exports. He concluded with this statement:
"Completing the Doha Round is not only technically possible, it is also a political must. Concluding the round will boost international trade and economic growth, and it will ensure that the WTO continues to play a key role in managing globalization and economic cooperation on a political level. Given what is already on offer on the negotiating table, and what remains to be done, my sense is that concluding this negotiation is both necessary and doable."
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