(Yonhap Interview) WTO deputy head warns against protectionism amid crisis

By Lee Youkyung
SEOUL, July 3 (Yonhap) -- Members of the World Trade Organization (WTO) should
refrain from adopting protectionist measures because open trade is important to
help the world economy weather the current recession, the deputy chief of the
trade body said Friday.
WTO Deputy Director-General Harsha V. Singh also said he supports South Korean
President Lee Myung-bak's recent call for the elimination of trade barriers as it
is in line with the WTO's aim to keep the market open for a global economic
recovery.
"It's a very important objective, which the WTO members are focusing on and WTO
director-general is providing basis to discuss this," Singh said in an interview
with Yonhap News Agency.
Singh, who joined the WTO Secretariat in October 2005, is visiting South Korea to
attend the international forum on trade remedies along with representatives from
the U.S. International Trade Commission.
The economic crisis has created more challenges for many governments around the
world because they are coming under pressure to protect local businesses, he
said, adding that giving in to such concerns would endanger the globalized world
economy.
Protectionist measures, however, have not been as widespread as some had feared,
Singh said. A number of countries even have taken measures to open their markets,
he added.
"Because of the focus that is given, including by President Lee in the G20 and by
members of the WTO, plus a number of economic inter-linkages...We have now,
compared to earlier, not as much of the protectionist (measures) and even market
opening initiatives," he said.
During the most recent G-20 summit, held in London in early April, President Lee
stressed the need to remove trade barriers in order to help the global economy
escape from a severe recession.
Singh urged countries across the world to continue such efforts and to be aware
of the repercussions felt by their trade partners when carrying out economic
stimulus measures.
"It is doubly required in difficult times when economic activity becomes an
important way of coming out of the crisis," Singh said referring to the trade
liberalization.
Asked about his views on South Korea's pursuit of bilateral free trade agreements
(FTA) with a number of countries, including the European Union, Singh said while
the WTO system recognizes the bilateral trade deals, they could potentially
become problematic.
"If you have too many of these, there are problems because these agreements
(could) end up with their own rules of origin, they end up with multiple effects
across different nations because these agreements don't include different nations
together," he said.
"Often it seems that poorer developing countries are not a part of such
agreements," he said.
The WTO deputy chief said certain issues could be addressed only within the
multilateral framework.
"To address big issues like in agriculture, or in trade remedies, or in
standards, you need to actually go towards a multilateral system." Singh said.
"No single country can come out of the crisis on its own. They need to work
together and be sensitive to the effects to the other countries."
ylee@yna.co.kr
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