G.A.T.T. expects trade up 4 p.c.

Press, 27 November 1986, Page 24

G.A.T.T. expects trade up 4 p.c.

NZPA-Reuter Geneva World trade is expected to grow by a modest 4 per cent this year, partly beI cause of continued weakness in the energy and commodities markets, the chairman of the 92-nation G.A.T.T. trade body said. Kazuo Chiba, the Japanese chairman of G.A.T.T.’s five-day annual meeting, also called for a nonprotectionist spirit to prevail in the new round of multi-lateral trade negotiations launched this year. Member nations of the General Agreement on Tariffs and Trade, dominate about 70 per cent of world trade. The Soviet Union has not joined the Geneva-based organisation, although four of its Eastern European allies are members. “Neither the statistics for 1985 nor the results projected for 1986 show any great buoyancy in world trade,” Mr Chiba said.

“This year, the latest available figures suggest we may see a 4 per cent increase in the volume of world merchandise

trade.” This year’s projected growth in traded goods, while better than the 3 per cent expansion last year, was far short of the 5.5 per cent annual average for the 1970 s and 8.5 per cent for the prosperous 19605, Mr Chiba said. In addition to trade problems, the world economy also faces erratic currency exchange rates and high debts, particularly among Third World governments, he said. Although developing countries continue to suffer from a lower price for their fuel and commodity exports, their share of traded goods rose to more than 12 per cent last year, Mr Chiba said. This compared to 7 per cent in the early 19705. “But we all recognise it has been a tough process. Too often developing countries have been turned away from the markets of their industrial partners at the very point when they have found the capacity to compete effectively,” the chairman said. Mr Chiba appealed for

co-operation in the “Uruguay Round,” launched by Ministers meeting in Punta del Este two months ago, aimed at sparking economic growth by reducing trade barriers.

“In doing so, they created world-wide expectations: stability and credibility in the international trading system is a matter of crucial concern for traders and businessmen who need predictability and security of markets,” he said. For the first time since G.A.T.T. was created in 1947, the round will include negotiations on services such as banking, tourism and insurance as well as goods. It is due to last four years. Committees in Geneva have already begun to define specific areas of negotiation, such as textiles and agricultural goods.

Mr Chiba called on delegates to establish the negotiating structure for the new round by December 19.