International trade declined sharply in late 2008 and continues to fall in 2009. This trade collapse is largely due to declining demand, which itself is a direct consequence of the global economic crisis.
Ministers from more than 40 countries, representing almost 80% of global trade, met at the OECD on 24-25 June to consider policy responses that could help restore financial stability and sustainable long-term growth.
In discussing how trade can contribute to a global economic recovery, the importance of avoiding protectionist measures that would only serve to raise costs and dampen demand was emphasised. The alternative – to open markets further, and in particular to conclude WTO trade negotiations, was widely supported.
Ken Ash, OECD Director for Trade and Agriculture, spoke with Ambassador Ron Kirk, US Trade Representative, Pascal Lamy, WTO Director-General and Simon Crean, Australia’s Trade Minister, during the two-day meeting:
Ron Kirk
US Trade Representative
"I would say our first challenge, at least as Trade Ministers, is to always keep in mind the extraordinary benefit that has come to all of our member countries, as well as the world, through the increased global trade liberalisation over the last forty to fifty years, and always have that as a point of reference of the benefit of having and maintaining open markets."
Pascal Lamy
Director-General, WTO
"Trade protectionism doesn't work. If I start protecting my imports, you're going to start protecting your imports and it just so happens that your imports are my exports. So we know it doesn't work, but inevitably the pressure is there and what we have to do is contain this pressure."
Simon Crean
Trade Minister, Australia
"I think we have won the argument as to why trade matters. Trade hasn't been a cause of the economic downturn, but it has been impacted. Importantly, trade is part of the solution because trade itself is an economic stimulus. Trade is a multiplier."
