Daily Independent (Lagos)
Rafiu Ajakaye (With Agency Reports)
9 July 2009
analysis
Lagos — Eight world leading economies (G8) and five developing ones have pledged to agree on a global trade deal by 2010, after years of foot-dragging and buck-passing blamed in part for the current economic downturn.
The deal in Italy on Thursday would see them head off trade wars that could hit world economies as they struggle to emerge from the recession.
Completing the Doha round of talks has risen to the top the agenda, due to fears that the global economic crisis will lead to a rise in protectionist policies, like the ones that helped cause the Great Depression of the 1930s.
"We reaffirm our commitment to maintain and promote open markets and reject all protectionist measures in trade and investment," said a draft of the joint statement signed by 17 nations, including the G8 and five key emerging market economies (G5).
The G8 comprises Canada, Britain, France, Germany, Italy, Japan, Russia and the United States. Members of the G5 are Brazil, China, India, Mexico, and South Africa.
Egypt was invited to the trade talks, which Austrialia, Indonesia, and South Korea also sign on.
The G5 issued a separate statement late on Wednesday expressing the importance of concluding the Doha round of talks, because "we are concerned with the present state of the world economy, which submits the developing countries to an inordinate burden resulting from a crisis they did not initiate."
Members of the G5, making their fifth straight appearance at the annual summit, albeit as guests, joined in the climate change talks, development aid, global economic growth, and international trade.
The summit agreed that global temperatures should not rise more than 2C above 1900 levels. That is the level above which the United Nations says the earth's climate system would become dangerously unstable.
But the G8 has so far failed to persuade developing countries to accept targets for reducing emissions by 50 per cent by 2050.
On Wednesday, the G8 agreed to 80 per cent cuts by the same date, but an unconvinced UN Secretary General, Ban Ki-moon, said the G8 has not done enough and should also set 2020 targets.
While the G8 agreement reached is welcome, he added, its leaders also need to establish a strong and ambitious mid-term target for emissions cuts.
Besides, there is still a long way to go, as developing nations like India will not sign up to any 2050 targets unless rich nations show more determination and offer more cash.
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