WTO chief Lamy urges 'political resolve' against protectionism

World Trade Organisation chief Pascal Lamy urged governments yesterday to show "political resolve" against rising protectionism as a result of the global economic crisis.

"We have seen an increase in restrictive trade measures since the onset of the crisis, so there is no room for complacency," he said at a news conference on the sidelines of a meeting of Asia-Pacific trade ministers in Singapore.

"I do not think we are in a situation where we need to cry wolf everyday, but we need to remain vigilant and open with one another," he said.

"Pressure is likely to be increased on policymakers to resort to contingency measures and other actions that restrict trade, particularly if the upward trend in unemployment persists before things hopefully get better," Mr Lamy added.

"So political resolve would be needed to continue to show restraint," he said.

Earlier, the trade ministers said the worldwide economic slump may be nearing its end but warned against protectionism while pledging to work harder for a new WTO deal by 2010.

"The global economy appears to be bottoming out, but the outlook remains uncertain and significant risks remain," the ministers from the Asia-Pacific Economic Cooperation forum said in a statement after a two-day meeting.

"We will therefore persist with efforts to support growth and facilitate trade and investment flows, keep our markets open, and give a new push to concluding the Doha Round."

The WTO's Doha Round of talks were launched in the Qatari capital in late 2001 to forge a new deal on goods and services.

However, it has repeatedly foundered, notably over disputes between rich and developing nations on agricultural and industrial products.