WTO chief: war would hit trade heavily

Date: 03/10/02

A US-led war with Iraq would deal a heavy blow to the global trading system - but it would not be a knockout strike, the new head of the World Trade Organization told MEPs this week.

Supachai Panitchpakdi said the possibility of an attack by the US and its allies would create flux in exchange markets and lead to a hike in insurance and transport costs. But the director-general said world trade could bounce back provided countries continued to abide by the WTO's rules and continued efforts to liberalise markets started at last year's Doha ministerial meeting.

'I don't think if we make enough progress and keep a strict regime that these hostilities could undermine the whole thing. The worst it could do is subject it to some costs,' the former Thai deputy prime minister told the assembly's committee on industry, external trade, research and energy.

A US-led war with Iraq would deal a heavy blow to the global trading system - but it would not be a knockout strike, the new head of the World Trade Organisation has told MEPs.