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UPDATE 1-Exporters warn on protectionism, urge Doha deal

Published 06/25/2009, 06:03 AM
Updated 06/25/2009, 06:24 AM

* 11 exporters warn of protectionist dangers

* Even WTO-compliant measures can be protectionist

* Group calls for Doha deal in "shortest possible time"

(Adds quotes, details, background)

PARIS, June 25 (Reuters) - Eleven export-led economies called on Thursday for vigilance against protectionism and said other members of the World Trade Organisation should conclude the Doha round as soon as possible.

"We must remain vigilant against increased protectionism, which can take the form of tariffs and subsidies plus other restrictive non-tariff measures," 11 trade ministers said.

The call by ministers of Chile, Colombia, Costa Rica, Hong Kong, Liechtenstein, Mexico, New Zealand, Pakistan, Peru, Switzerland and Uruguay, was contained in a communique agreed on the sidelines of an Organisation for Economic Cooperation and Development ministerial meeting.

A copy of the communique was obtained by Reuters. The group overlaps with a dozen export-led economies that issued an urgent call in May to complete the Doha round.

The stalled Doha talks were launched in late 2001 to help poor countries prosper through trade.

"The Doha round has a crucial role to play at this time. Concluding the negotiations will contribute to economic recovery and reinforce the benefits of the multilateral trading system," it said.

"Reforms resulting from the round will provide valuable insurance against the threat of protectionism."

The group called for senior officials to relaunch negotiations on a Doha deal before the European summer break, and for political leaders of WTO members to drive progress in the coming months.

The group said even measures that comply with WTO rules can have a protectionist effect, particularly dangerous as the world struggles with the biggest economic shock since the 1930s.

"WTO members must exercise utmost restraint and not follow the easy path of resorting to such measures at this difficult time," it said. (Reporting by Jonathan Lynn; editing by Robert Woodward)

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