'Need to stimulate economic recovery' - Ban Ki-moon

Trade must form part of global efforts to stimulate an economic recovery, UN secretary-general Ban Ki-moon said yesterday.

"Trade has long had tremendous potential as an engine of sustained economic growth and development," he told a World Trade Organisation two-day conference on the Aid for Trade process. "Today, trade can and must be part of our efforts to stimulate a recovery," he added.

Highlighting the importance of helping developing nations develop the necessary infrastructure and know-how to facilitate trade, Mr Ban said that trade openness in itself is "not sufficient."

"Countries must first have a competitive production base in order to export. They must have the necessary infrastructure and legal and policy frameworks," he said.

"Knowledge also plays a key role in enabling countries to take advantage of international rules and opportunities. With these steps, as well as reforms in the global trading regime, trade can achieve a great deal," Mr Ban added.

The Aid for Trade process launched at a WTO ministerial conference in December 2005 aims to help developing countries build infrastructure to take full advantage of a successful world trade liberalisation deal.

Aid for trade encompasses grants and loans to build roads, ports and telecommunications, among others, as well as technical assistance in helping countries develop trade strategies or negotiate more effectively. At least 15 heads of international organisations, including World Bank President Robert Zoellick and International Monetary Fund head Dominique Strauss-Kahn are attending the event.

Meanwhile, international agencies urged an increase in assistance for trade by developing countries at the conference which began amid fears that aid will be eroded by the economic crisis.