World Trade to Grow 10% in 2010

(Industry Week – Agence France-Presse)

The World Trade Organization on July 23 raised its forecast for growth of global commerce to 10% this year, with its director general saying that even this might yet “turn out to be too low.” WTO chief Pascal Lamy said: “Our forecast for world trade this year is plus 10% in volume after the minus 12% we registered in ‘09.” Lamy was speaking at the launch of the trade body’s annual report on the sidelines of the Shanghai World Expo.

In a separate speech at Shanghai’s Institute of Foreign Trade, Lamy said that after last year’s dramatic slump, “trade growth is coming back fast, thanks in no small measure to the continuing dynamism of China and the others.” The WTO’s latest forecast marks a rise from the 9.5% issued in March. The secretariat had warned then that the figure could prove too optimistic as markets were at that point unsettled by Europe’s sovereign debt crisis.

In the trade body’s annual trade report, the WTO focused on the issue of trade in natural resources. It called for greater global cooperation on such trade, warning that a failure to work together could spark new tensions. “I believe not only that there is room for mutually beneficial negotiating trade-offs that encompass natural resources trade, but also that a failure to address these issues could be a recipe for growing tension in international trade relations,” said Lamy in the report. Read more here.