NEW WTO REPORT: TRADE GROWTH DECELERATES, OIL REVENUES BOOM
The growth of world trade slowed down in 2005 due to lower net global economic activity, according to new data from the WTO. The global trade body’s annual International Trade Statistics report, released on 9 November, says that global merchandise trade grew by 6 percent in 2005, compared to 9.5 percent the year before.
WTO Director-General Pascal Lamy used this finding to urge reluctant governments to step up efforts to restart the suspended Doha Round negotiations. "At a time of uncertainty a strong, rules-based multilateral trading system is the best insurance policy for the world economy," he said upon the release of the report. "The lingering indecisiveness of the Doha Round further saps the confidence in the multilateral trading system as an engine of economic growth and development," he added. "It’s time for political action to bring the round to a successful conclusion."
The 110-page report provides a detailed overview of trade developments by region and by product in 2005, along with data on longer-term trends in global commerce. It found that price developments, both increases and decreases, strongly influenced trade trends in 2005. Growth in manufactured goods slowed to 7 percent, while farm exports expanded by 5.5 percent — higher than the year before.
Oil-exporting economies benefited from high world fuel prices, which also drove changes in regional trade flows. Russia, Saudi Arabia, Iran, Venezuela, Algeria, Kuwait and Nigeria all recorded merchandise export revenue growth (in dollar terms) of at least 33 percent. Meanwhile, the US’ trade deficit rose to a record USD 793 billion, worth almost 8 percent of total world merchandise exports. International trade in fuels and mining products increased by only 2.5 per cent in 2005.
Export prices for manufactured goods and agricultural products increased less in 2005 than in 2004.
Countries including Brazil, China, India, Russia, Poland, Mexico, and Hungary increased the value of their services exports by over 15 percent.
In spite of the deceleration, the report noted that global trade growth continues to outpace the rise in worldwide output.
To access the report, visit http://www.wto.org/english/news_e/pres06_e/pr457_e.htm.
"Rise in fuel prices during 2005 lifts shares of oil-exporters in world trade while US trade deficit reaches record level," WTO PRESS RELEASE, 9 November 2006.
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