L'Aquila, Italy - Group of Eight (G8) leaders on Wednesday
rejected protectionism and called for a quick conclusion to the
stalled Doha round of talks on world trade in an official statement.
'We reconfirm our commitment to keep markets open and free and to
reject protectionism of any kind. In difficult times we must avoid
past mistakes of protectionist policies,' the leaders of Britain,
Canada, France, Germany, Italy, Japan, Russia, the United States and
the European Union said.
The G8 leaders, who met for their annual summit in the Italian
town of L'Aquila, called for a 'rapid, ambitious, balanced and
comprehensive conclusion of the Doha Development Agenda on the basis
of progress already made' in World Trade Organization (WTO) talks.
They hailed 'signs of stabilization' in world financial markets
following the catastrophic slump that began in the autumn, and said
that they 'believe that the turnaround will be reinforced as our
(economic stimulus) measures reach their full effect.'
But they stressed that 'the situation remains uncertain and
significant risks remain to economic and financial stability.'
To restore confidence, it is an 'urgent priority' to repair trust
in the banking sector, including by dealing with so-called 'toxic'
assets whose value can no longer be estimated, they said.
The summit opened amid the worst global downturn in decades, with
forecasts from the WTO that global trade will drop by 10 per cent in
2009 compared with last year.
On Tuesday, WTO Director General Pascal Lamy urged the G8 to fight
protectionism and complete the Doha Development Round of trade talks,
launched in Qatar in 2001, by the end of next year.
The talks have stalled over differences between developed and
developing nations on market access, subsidies and tariffs.
The European Union on Wednesday echoed Lamy's call for a 2010
deadline, with European Commission President Jose Manuel Barroso
describing the target as 'realistic.'
'I hope we can make progress towards a balanced and successful
conclusion of the Doha development agenda. A clearly defined
timetable for this will be essential. For me, this means 2010,' said
Barroso before attending Wednesday's talks with G8 leaders.
But the G8 statement, approved on the eve of talks with India,
Brazil and other major developing economies, did not set a deadline
for the conclusion of the Doha round.
Despite their call for caution, leaders also looked beyond the
crisis, calling for 'appropriate strategies for unwinding the
extraordinary policy measures taken to respond to the crisis once the
recovery is assured.'
'These 'exit strategies' will vary from country to country
depending on domestic economic conditions and public finances, and
must ensure a sustainable recovery over the long term,' they said.
That wording balances the concerns of the United States, which is
calling for stronger stimuli, and EU powerhouse Germany, which is
eager to rein in public spending as soon as the crisis is over.
G8 leaders also called for more transparency in world oil markets,
after oil prices soared by 75 per cent since the spring.
'It is in the interest of both producers and consumers to enhance
transparency and to strengthen their dialogue towards reducing
excessive volatility in the market,' the statement said.
USA
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