Although various countries worldwide have in the past three months imposed trade restrictions, there were no signs of "high intensity" protectionist measures, dpa quoted World Trade Organization (WTO) Director General Pascal Lamy as saying in a report Today. A total of 119 trade measures have been reported by 24 countries and the European Union to the WTO Secretariat, Lamy said in his third report on trade protectionism since the global economic crisis went into full swing last autumn. Lamy said he regarded 83 of these trade measures as restrictive. At the same time, the WTO has revised downward its trade outlook, predicting a decline in volume of 10 per cent, compared to the previously expected 9 per cent drop. The global economic system remained "fragile." Exports of developed economies are now forecast to fall this year by about 14 per cent while developing economies will likely see a 7 per cent drop and will remain vulnerable due to a lack of credit. Goods most affected by the financial crisis were those produced by the largest economies, data indicated, with Lamy citing the example of Germany which has seen its export levels plunge. This decline there was "reflecting how strongly trade in automotive products has been affected with worldwide demand for cars and light trucks cut currently by about half," Lamy wrote. Developing countries, some very dependent on exports for their growth models, would continue to feel the pain of the downturn, the WTO predicted. Those lower income countries were being especially hit by the still frozen or overly expensive credit markets. Also, investments were being pulled out of the developing world, remittances were dropping and the largest banks were being pushed to lend domestically, leaving borrowers in poorer nations without access to financing. "Anecdotal evidence shows that the global market situation remains tense, with increased payment defaults and high costs of credit," Lamy said in his report to members of the WTO. The averting of measures that would have caused major trade distortions was achieved in the past three months "with difficulties," Lamy said. He also told WTO members that there was "no general indication yet of governments unwinding or removing the measures that were taken early on in the crisis." The number of new trade-restricting or distorting measures announced or implemented since March exceeded the number of new trade-liberalizing or facilitating measures by a factor of more than two, the report said. Regarding new stimulus packages, Lamy said he was concerned about the "buy local" provisions in some plans and that certain measures, such as subsidies, may remain in place after the crisis has subsided, leading to trade distortions. Trade in services was thought to be weathering the crisis relatively well, though Lamy noted that the "national bias" prevailing in s+/ aes tur-o th} downturn could negatively affect outsourcing.
