World Trade Improves

Press, Volume CIX, Issue 32078, 28 August 1969, Page 8

World Trade Improves

(N.Z P.A.-Reuter—Copyright) GENEVA, Aug. 27. • World trade last year was exceptionally good, exports rising by 11.1 per cent to a value of $U5238,700m, according to a United Nations report, which says that this expansion was achieved despite many political and economic disturbances. The growth of exports compared with 5.4 per cent in 1967, and with an average of 8 per cent between 1960 and 1966. The report, prepared by the secretariat of the United Nations Conference on Trade and Development, will be submitted to the board of U.N.C.T.A.D., representing 55 nations, which is meeting in Geneva. Developing countries benefited from last year’s trade expansion, increasing their exports by 8 per cent, compared with 2.9 per cent the previous year and 5.9 per cent in the years from 1960 to 1968. Their performance, how-

ever, was still well behind that of the industrialised countries, whose exports rose by 12.4 per cent, compared with 5.5 per cent in 1967 and 8.8 per cent between 1960 and 1966. But even the 8 per cent growth figure presents a brighter picture of the achievements of the developing world than is fully representative, according to observers in Geneva. If oil exports are excluded, their exports last year rose by only 5.2 per cent, compared with 1.2 per cent the year before. Thus, the gap between the rich and poor nations continues to widen. Of the 1968 trade increase, developing countries took only 13.4 per cent, and developed countries 77.5 per cent Between 1960 and 1968, the industrial countries’ share of world trade has steadily shrunk from 21.3 per cent to 18.2 per cent, while that pf developed countries has risen to 70.4 per cent from 66.8 per cent.

Communist countries maintained a steady share of about 11 per cent during the same period. South and East Asia, Taiwan, Hong Kong and South Korea maintained their high export growth, while India, Pakistan and Singapore did much better than in 1967. The area as a whole increased its exports by 7.8 per cent Developing countries increased their imports during the year by 6.4 per cent, an improvement due to higher imports by oil-exporting countries. Western Asia increased its import bill by 13.1 per cent, Iran, Israel and Syria buying substantially. The U.N.C.T.A.D. report says that the United States, West Germany, France and Japan were mainly respon-

sible for the strong increase of imports into developed countries last year. Vietnam continued to provide a good market for the Far Eastern region, although there were signs that the war was running down. Tariff reductions under the Kennedy round, and the completion of the European Economic Community customs unions are cited as additional factors responsible for the trade boom.