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World Trade Report 2006

Exploring the Links Between Subsidies, Trade and the WTO

image of World Trade Report 2006

The annual World Trade Report focuses on trade policy issues - the core topic addressed in 2006 is subsidies. The Report also takes a look at recent trade developments and examines a range of trade topics, including trade in textiles and clothing, flows of international receipts and payments of royalties and license fees, trends in the trade of least-developed countries, and the impact of natural disasters and terrorist acts on international trade flows. The World Trade Report is useful for policymakers and for any individuals or groups interested in global trade policy.

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Recent trends in international trade

The world economy expanded by 3.3 per cent in 2005, less rapidly than in 2004, but still slightly faster than the decade average. Economic growth remained strong in most regions although less buoyant than in the preceding year. Only Europe’s economy continued to record low GDP growth – less than half the rate observed in North America. In contrast to Europe, Japan experienced a strengthening of economic activity. In light of slower economic growth worldwide in 2005 and of oil market developments, merchandise trade growth – like GDP growth – decelerated in real terms, but still exceeded the average for the last decade.

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