WTO warns against protectionism in Asia fallout
CERNOBBIO, Italy, June 14 (Reuters) - The World Trade Organisation is on the lookout for potential protectionist measures among developed economies in response to cheaper Asian imports, director general Renato Ruggiero said on Sunday.
Yen and other Asian currency weakness as the fallout from Asia's economic crisis worsens is starting to have an impact on world trade, he said, since it makes Asian imports cheaper than goods produced in developed countries.
''I would say we are starting to see the negative effects of Asia's economic crisis showing up on trade only now,'' he said at a conference here.
''The positive thing is that we haven't seen any protectionist trade measures yet. We are watching carefully to see that there are none.''
Ruggiero said that the Asian economic crisis could worsen further if ''the Japanese economy doesn't change direction and if China were to devalue its currency.''
''If that were to happen, ramifications for developed economies could be even worse,'' he said.
The WTO ''is keeping its eye'' on the evolution of trade meaures in order to ward off protectionist barriers, and there have not been any, he said.
''But we're certainly starting to feel the effects'' of the Asian crisis on trade, he said. |
