- GENEVA: World merchandise trade soared 25 percent in year-on-year value over the first three months of 2010, the World Trade Organization said Wednesday, in another sign of robust recovery from last year's record contraction in international commerce.
The figures build on the turnaround that gained speed in the second half 2009, and show a steep rise in trade in March — with the end of the slowdown period when many businesses in the Northern Hemisphere stop running at peak capacity because of energy prices.
Although January-March exports stagnated or actually slowed down in many parts of the world compared to the previous quarter, they were significantly higher in all regions in the year-to-year comparison. The first quarter of 2009 represents the worst of the global economic crisis and its effect on trade.
Fueled by stronger Asian demand and higher commodity prices, Russian exports raked in 62 percent more money than in the same quarter last year, while Middle East and African exports rose 54 percent, the WTO said. Asian exporters also performed well: Japan's revenues rose 48 percent; India, 33 percent; and China, 29 percent.
Rising prices for crude petroleum, energy, metals and food products had a key role, the WTO said.
Still, the year-on-year export comparison also showed healthy export recovery from the United States and Europe.
The WTO said its data referred to current US dollar amounts, unadjusted for inflation, which can't be directly compared to annual trade growth data that relies on a historical valuation of the dollar.
Last year, world trade crashed 23 percent in value terms to $12.1 trillion, according to the WTO. Commercial services exports sunk 13 percent to $3.3 trillion for their first slowdown in 26 years.
The head of the WTO warned on Wednesday that trade protectionism would remain a threat to the global economy for as long as unemployment remained high.
Pascal Lamy, WTO general director, said in an interview with the French financial paper La Tribune that although there had been no surge in protectionist practices since late 2008, "the source of protectionist temptation is unemployment."
He warned that joblessness had "got worse, particularly in developing economies."
Lamy insisted there was still life left in the WTO-sponsored Doha Round of global trade liberalization talks, which have hit a standstill in the face of discord between developed and developing countries.
Meanwhile, China will submit a new proposal by mid-July to the WTOn to join the WTO government procurement agreement, which regulates trade in public-sector purchases, trade officials said on Wednesday.
Chinese membership in the voluntary agreement is keenly awaited by Beijing's partners, who say the scale of government purchases in China's economy is potentially huge.
Yi Xiaozhun, vice-minister of commerce, told WTO members that China would make the offer before the next meeting of the global trade body's government procurement committee, due in the middle of next month, the officials said.
He was speaking during the WTO review of China's trade policies, held every two years, at which China faced demands for more transparency in its trade policy and calls to continue liberalizing its economy — to which Yi responded by assuring members that China would continue opening up.
Some members including the United States had questioned China's "indigenous innovation" policy which they said amounted to a form of "Buy China" favoring domestic producers over foreign suppliers, but Yi said it applied to all companies established in China.
China first applied to join the WTO government procurement agreement in December 2007 but its partners wanted better terms than it first offered.
Worldwide, government procurement accounts for about 23 percent of demand — nearly a quarter of the economy.
China estimates that the share of government procurement in its economy which would be covered by the agreement is much less.
Yi said it accounts for only two percent of gross domestic product because China excludes purchases by state-owned enterprises and limits the definition to purchases using budgetary funds above a certain threshold.
That would still make it worth some 615 billion yuan ($90 billion) a year.
So far 41 of the WTO's 153 members have joined the government procurement agreement, including the EU's 27 members. The latest to join was Taiwan in 2009.
All WTO members undergo a trade policy review every two or four years, with bigger economies assessed more often.
China received a record 1,500 requests for information ahead of the review, testifying to the interest in the rapidly growing economy of the world's second biggest exporter and third biggest importer.
During the review it faced calls to open up services such as banking, insurance, telecoms and postal services, and criticism, particularly from the United States and European Union, about restrictions on exports of raw materials.
In a report for the review, the WTO said the export curbs may not meet their aim of conserving resources but gave Chinese manufacturers an unfair advantage.
But developing countries, especially in Asia, and some rich nations like New Zealand and Japan, expressed support for the way China had kept its economy open during the crisis.

