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THE
World Trade Organization (WTO) has cautioned developing
countries, particularly the Philippines, that high
export growth in the first two months of the year may
not be enough to offset an economic slowdown resulting
from the deceleration of economic growth in developed
countries like the
United States,
the country’s biggest export market.
The
international trade group said current economic growth
forecast for developed markets is 1.1 percent and above
5 percent for developing countries. Together, the WTO
said these could result in world output growth of 2.6
percent and a global trade expansion of about 4.5
percent in real terms, which discounts inflation.
The
organization added that projections retained by major
institutional forecasters indicated further deceleration
in world economic growth this year. The organization
said that even if international financial markets
recover, the immediate impact of such on economies is
limited. “These are uncertain and troubling times for
the global economy. To date, the financial market
turmoil, significant price surges and the slowdown of
developed economies have not led to a disruption of
trade. But protectionist pressures are building as
policymakers seek answers to the problems that confront
us. More than ever we must reinforce our global trading
system with rules that are more transparent, predictable
and equitable,” said WTO president director-general
Pascal Lamy in a statement.
“A
reinforced trading system is an essential anchor for
economic stability and development. Clearly, the best
way to achieve this is to conclude the Doha Development
round. The time for posturing and delay has ended. What
we need now is action,” added Lamy.
To help
cushion the blow of a slowdown in trade, the WTO urged
developing countries to make sure that estimates of GDP
growth are “qualified” because the situation is
different in low-income food-deficit countries due to
the recent sharp increase in food prices.
The WTO
said that already, the prices of major cereals doubled
in international markets between mid-2007 and March
2008, causing many developing countries to be concerned
about food security and face a sharp rise in their
import bill this year.
“Given
the large share of food in the consumption of the poor
in these countries, there is a risk that higher food
prices could lead to an increase in poverty.” |
