World Trade Organisation Director-General Pascal Lamy has told an informal meeting of the Trade Negotiations Committee on 10 October that he has convened major providers of trade finance to a meeting on November 12 to ensure developing-country access to financing of imports and exports. He said it was still possible to reach agreement on modalities in agriculture and non-agricultural market access this year, and “the Ministers with whom I have spoken are all determined to push ahead.

Lamy has said since July this year he has had intensive extensive contacts with Ministers and Senior Officials in all regions, including during his visits to Delhi and Washington. He said that the type of uncertainty which is now infiltrating the international scene could be a precursor to rising protectionist tendencies. Raising barriers at the frontier, starting with barriers to trade in goods or services, was often a tempting political option under such circumstances. The role of the WTO as a firewall against protectionist responses is thus vital Lamy noted.

Referring to the current international financial crisis, the director-general said the crisis could have an impact on developing country access to financing of imports and exports. Given the deterioration of the financial landscape, and despite the welcomed announcement yesterday by the World Bank IFC of an increase in its trade financing programme by USD500 million, Lamy said he has convened major providers of trade finance to the November meeting to examine this issue and find ways to alleviate the situation if it was to deteriorate. He added that if there were indications that the financial situation could be having serious implications more generally for trade or the trading system, he would consult WTO general council Chairman on the possibility of convening a council meet to discuss further steps.