Chairman of the International Chamber of Commerce, Marcus Wallenberg. - Reuters
PARIS, France (Reuters):
Two international business groups fear protectionism and trade disputes will increase after Monday's suspension of global trade talks that could take years to restart.
The World Trade Organisation's (WTO) Doha round was billed as a chance to boost growth and ease poverty and would help businesses by bringing them access to new markets.
"Failure to reach an agreement creates a systemic risk - opening the door to a greater number of bilateral trade agreements, more trade disputes and a resurgence in protectionism," the Paris-based International Chamber of Commerce said in a statement late on Tuesday.
The ICC said it was "extremely disappointed" by the collapse of the talks which came after countries failed to overcome differences on reforming global farm trade.
"The lack of political will on the part of WTO members to resolve differences on agricultural subsidies and market access has put the entire round and the multilateral trading system in peril," said ICC Chairman Marcus Wallenberg, who is also the chairman of Swedish defence and aerospace group Saab.
BIAC, the business group that advises the Paris-based Organisation for Economic Cooperation and Development, urged governments to re-emphasise their commitments to the WTO system and restart talks as soon as possible.
"We strongly urge the political leaders to avoid any new protectionist measures during the period of suspension," BIAC said in a statement.
