Drop In Global Trade Greater Than Predicted
By: Ainsley Brown
Global trade was expected to drop as much as 10% in 2009; instead it fell by 12%. That extra two percent may not seem like much but it represents the largest drop in global commerce since 1945.
This greater than expected drop has lead to renewed calls from Pascal Lamy, the Director General of the World Trade Organization, for the successful conclusion of the Doha Round of trade talks. The drop, according to Mr. Lamy made it an “economic imperative” for these trade talks that began in 2001 to be successfully concluded this year.
The Doha – Developmental – Round of trade talks is primarily aimed at the removal of trade barriers faced by developing nations, specifically those in agriculture. The talks which are not at a virtual stand still have stalled for largely due to disagreements between the developing world, as a general collective and the US, European Union (EU) and other industrialized nations , as another collective, over how deep to cut the agricultural subsidy programs operated by the latter.
Another bone of contention is how within the talks is how far and how deep should developing counties like China and India go in removing barriers to trade.
