Proposal for standstill commitment on protectionism
Geneva - An initiative was put forward Tuesday at the World Trade Organization to fight protectionism with a proposal asking countries to commit not to take any trade restricting measures to work their way out of the economic crisis. The standstill commitment, tabled by Hong Kong, would ask members to voluntarily refrain from any moves which would have an adverse impact or distorting effect on trade even if they did not violate WTO rules, officials with the agency said.
Many countries keep their tariffs or subsidy rates, for example, below the mandated ceilings agreed to in WTO treaties. As such, they have room to manoeuvre and put up barriers to trade without violating their commitments.
The officials said the proposal was met with the support of "many" WTO members at an informal meeting of the trade policy body.
The body was meeting to discuss the recent report by WTO Director General Pascal Lamy in which he said there was no indication of an imminent descent into "high intensity protectionism," but warned of creeping measures being implemented by various countries.
Those incremental steps, he said, could "strangle" international trade.
Over 30 countries spoke during the session, including the United States which said that while it too was worried over protectionist measures, it felt the ones implemented so far have been more minimal than the WTO describes.
The US has been among the countries criticized for taking some trade restricting and distorting steps in recent months, including its bailouts for the auto-industry.
The WTO has predicted global trade will drop this year by 9 per cent, the most in over 60 years, due to the global economic downturn.(dpa)