Thaindian News

By Jaideep Sarin
L’Aquila (Italy), July 9 (IANS) Trade protectionist policies of some countries, especially in the times of global economic crisis, have been given a thumbs down by the joint declaration of the G8 and G5 summit in this Italian city.

The joint declaration of the world’s wealthiest and most industrialized countries (G8) and the emerging economies (G5) said: “We will resist protectionism and open markets for trade and investment. We reject all protectionist measures in trade and investment.”

The emerging economies and developing countries had been saying that they were worst hit by the economic crisis and protectionist policies would spell doom for their economies.

The declaration sought an ambitious and balanced conclusion to the Doha development round in 2010. It said that in order to fill remaining gaps in negotiations, ministers in-charge of trade had been instructed to explore all possible avenues of direct engagement within the World Trade Organization (WTO).

The ministers have been asked to meet before the G20 Pittsburg summit in US in September this year.

The Doha talks on trade had broken down July last year following differences between India and the US.

Admitting that the global economic crisis had serious and alarming implications for growth and poverty eradication in developing countries, the declaration said that G8 and G5 countries were determined to engage responsibly with low-income countries, especially those in situations of fragility.

It resolved that partner countries should continue reforming financial system regulation to prevent boom and bust cycles in economy.

The declaration admitted that international financial institutions needed reform to make them compatible to the reality of the new world financial order.