WTO forecasts slower economic, trade growth in 2007

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GENEVA, Aug 15 (Xinhua): Global economic and trade growth may slow down this year due to market risks and large trade imbalances, the World Trade Organisation (WTO) said in its 2007 annual report yesterday.
"Risks in financial and property markets and large trade imbalances in goods and services mean increased uncertainty in 2007 and raise the prospect of weaker economic and trade expansion in the coming year," the report said.
"The consensus among forecasters of around 3 per cent global economic growth in 2007 could slow merchandise trade growth to about 6 per cent compared with 8 per cent in 2006," it added. According to the report, the challenge for the WTO over the next few months is to conclude the Doha round negotiations, which aim to lower trade barriers to better integrate developing countries into the global trading system while expanding trade opportunities for all WTO members.
The Doha round trade negotiations "have been the focus of our work over the past year and the time remaining in which to conclude them runs short," WTO Director-General Pascal Lamy said in the forward to the report.
"If we are to conclude these negotiations in the near future, as the WTO members have pledged to do, we will need to make significant progress as soon as possible in the crucial areas of agriculture subsidies, tariffs on agriculture and industrial products," Lamy said.
The WTO chief added that a successful Doha round agreement would send a much needed message of confidence to governments, economic agents and to the public.
"It would show that we remain committed to open markets and multilateral rules, and that the foundations of the global economy are reinforced," he said.
The Doha round was launched in 2001 and has been deadlocked over the cutting of agriculture subsidies as well as tariffs on agriculture and industrial products.
Sharp and complex differences remain among the WTO's 151 members, particularly the United States, the European Union and major developing countries such as Brazil and India.