Trade monitoring

As we enter the final quarter of 2011, the world finds itself again in a situation of financial turmoil. The positive signs of growth in the first part of the year have been clouded by the sovereign debt crisis and ensuing currency turbulence which have brought us to the edge of a new crisis. Trade growth has also slowed down in the closing months of 2011.

In the last few months trade has contracted more than at any time since the 1930s, reflecting the dramatic global economic downturn provoked in the first instance by the collapse of major financial institutions. Trade growth will be strongly negative this year and we are unlikely to see sustained economic growth until 2010. This adversity is severely testing the policy ingenuity of governments across the globe, and in today’s interdependent world, their willingness to make common cause in addressing shared challenges. Effective international cooperation and open markets are as vital today as they have ever been.

Five comprehensive reports on global trade developments in 2010 were prepared by the WTO Secretariat on behalf of the Director-General. Three of these reports, covering trade and investment measures taken by the Group of 20 (G-20) economies, were prepared jointly with the Secretariats of the Organization for Economic Cooperation and Development (OE CD) and the United Nations Conference on Trade and Development (UNCTAD). The other two covered relevant measures taken by all WTO members and observers, and were discussed at TPR B meetings. The Director-General stressed at these meetings that the global crisis and the WTO’s trade-monitoring exercise underlined the importance of increased transparency for the smooth functioning of the multilateral trading system.