Sunday, 23 November 2008

Denmark warns against new trade barriers

Fri 21 Nov 2008

ADDIS ABABA (Reuters) - Developed nations must not use the global financial crisis to tighten trade barriers as free trade is the best way to boost economic growth, Denmark said late on Thursday.

World Trade Organisation (WTO) member countries come close to a new global trade deal in July but faltered on differences over measures to protect subsistence farmers in poor countries from a surge in imports.

There are moves to revive the talks and ministers from the world's poorest countries are pushing for a quick deal because they fear protectionist groups might use the economic slump to push their agenda.

"The financial crisis must not be used as an excuse to expedite protectionist measures," said Danish Prime Minister Anders Fogh Rasmussen.

"It is hypocritical of developed countries to give development aid with one hand and raise trade barriers with the other," he said in Ethiopia at the second meeting of the Africa Commission, a Danish-led drive to boost African development.

The Doha round was launched in the Qatari capital seven years ago to free world trade and help developing countries by cutting farm subsidies and tariffs on agricultural and industrial goods.

"One of the most effective means of stimulating economic growth is to open up our markets to free trade," he said. "We strongly regret the failure of negotiations in the Doha round."

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