Global trade growth slows reports WTO

GROWTH in world trade has slowed more than expected this year because of sluggish demand in the West for consumer goods, according…

GROWTH in world trade has slowed more than expected this year because of sluggish demand in the West for consumer goods, according to the World Trade Organisation's annual report, published yesterday.

The report coincided with the opening in Singapore of the WTO's first ministerial meeting to discuss liberalising global trade in telecommunications and information technology, and the lifting of trade barriers.

The Minister for Tourism and Trade, Mr Enda Kenny, called on WTO members to commit themselves to do more to remove barriers to trade. He also highlighted the need for the WTO to demonstrate its relevance to political leaders, to business and to consumers if it wished to be successful.

"Those attending the conference had a particular responsibility to communicate to the public the contribution that trade liberalisation was making to increasing living standards worldwide," he said.

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Progress was made in a divisive row between rich and poor countries over textiles, and ministers sought to press ahead with simplified customs procedures to promote greater trade.

According to the report, sluggish consumer demand in Western Europe and North America has been the main cause of the slowdown.

The report predicts a 5 per cent increase this year in the volume of merchandise exports, compared with 8 per cent last year and 10 per cent in 1994. In March WTO economists were forecasting world trade growth of 7 per cent for 1996.

"In fact, it is not so much a question of a sharp slowdown in global trade growth as a return to more typical trade growth following two exceptional years," the WTO says.

The report forecasts that developing countries will expand trade much faster than the industrialised world, with Asia setting the pace.

Despite the slowdown, poorer nations in Asia are predicted to increase exports by 9 per cent and imports by 10 per cent.