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Image header Agence Europe
Europe Daily Bulletin No. 9906
Contents Publication in full By article 15 / 33
GENERAL NEWS / (eu) eu/trade

Facing a predicted decline in world trade of 13%, OECD warns against protectionism

Brussels, 20/05/2009 (Agence Europe) - According to OECD forecasts, the volume of world trade is expected to fall by 13% this year, compared to its rate in 2008. The OECD is calling on countries not to take protectionist measures and keep their markets open so that economies can benefit once there is recovery. This week, Ken Ash, the Head of the OECD's trade and agriculture directorate, presented a new OECD publication on trade policy. His presentation was attended by the Commissioner for trade, Catherine Ashton. Mr Ash forecast that the actions planned on by member states, which would discriminate against foreign goods, services, firms and workers, could have a devastating effect and worsen the recession and make it more protracted. According to Ash, consumers would be affected by higher prices and less choice: the input of national industries would cost more because intermediate goods and services make up a significant part of their current trade; exporters would be doubly penalised by an increase in costs and reprisals from other countries. The effect on the economy would be the destruction of many more jobs. (E.H./trans/rh)

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