The ongoing turmoil in Europe with the euro and sluggish global economic recovery has important implications for growth and trade in developing countries. A World Bank report released recently suggests that as a result of instability in advanced economies, developing country growth will slow to a relatively weak 5.3 percent in 2012. In a speech recently, WTO Secretary General Pascal Lamy described the rise in trade protection as alarming. Restrictive measures put in place since the global economic crisis in 2008 amounts to 3% of world merchandise trade, and almost 4% of G-20 trade. They have remained unabated over the past seven months.
Given economic slowdown in developing countries and an increase in restrictions on trade, what policy steps can the global community take to ensure trade remains a source of jobs and growth?