Minor barriers to trade could slow the speed of a global economic recovery even if protectionism has not reached the high levels seen in the past, the head of the World Trade Organisation has said.
Speaking in Berlin, WTO Director General Pascal Lamy said a decline in trade volumes appeared to be at an end and the global economy on track for a fragile recovery.
‘For the moment, we have not seen the kind of high intensity protectionism as in the past, even if an accumulation of lower intensity measures could stand in the way of a more rapid recovery,’ he told a meeting of the VDMA engineering industry association.
‘There are some green shoots but my sense is that we must consider them with caution ... On the trade side, the contraction appears to have begun to be bottoming out,’ he added.
The WTO expects world trade to contract 10% this year, hit by the economic crisis and tight credit conditions which have been particularly tough for importers and exporters.
The organisation has pushed countries to sign up to a sweeping global trade agreement which has been under negotiation since 2001.
A successful agreement in the so-called Doha round of trade negotiations could help governments unwind their massive stimulus packages and spur economic growth, Mr Lamy said.
