Pascal Lamy, director-general of the World Trade Organisation (WTO), has called for the immediate resumption of efforts in the New Year to improve the availability of trade finance. He made his comments to the Trade Negotiations Committee this week, where he also emphasised the importance of reviving this year's failed trade talks, highlighted the need to improve the monitoring of trade measures such as the raising of tarriffs, as well promoted the acceleration of the Aid for Trade initiatives
In an official statement released this week, Lamy says: “we need to keep reviewing developments in the area of trade finance where the WTO early interventions have been useful in mobilising resources for this important area; trade finance is an area which seriously impacts trade flows for developing countries and we should remain vigilant and active.”
His comments follow the WTO meeting on trade finance held in Geneva in November, which attracted representatives from trade banks, multilaterals and government institutions. The aim of the meeting was to address the lack of liquidity in the trade finance market caused by the wider credit crisis, which was hindering exporters and importers accessing much needed funding.
Lamy also expressed concern over any slide towards protectionism, and the WTO will be looking at ways to further monitor any measures that might have a negative effect on trade.
He also spoke of keeping trade issues a top priority for governments across the world.
He explains: “We need to keep the focus on mainstreaming trade into members’ development policies and we also need to keep pressure on the mobilisation of funds.”
WTO statistics were released on 5 November, revealing world trade growth slipped to 6% in 2007, a fall from 8.5% in 2006. This decline was mainly put down to the “deceleration of import demand, mainly in the United States, but also in Europe and Japan.”
At the time, Lamy said “the market for trade finance has severely deteriorated”, and called for public authorities to allow financial institutions and ECAs to expand their ability to cover risks. He added: “if trade finance is not tackled, we run the risk of further exacerbating this downward spiral.”
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