Darker clouds over world trade

Rising trade protectionist measures adopted by some countries could spell trouble for China, which has just completed its 10th year as a member of the World Trade Organization (WTO).

In 2010, world trade recorded its largest annual increase as merchandise exports surged 14.5 percent, supported by a 3.6 percent recovery in global output as measured by GDP. China made a particularly strong contribution to the recovery of world trade, with its exports increasing by a massive 28 percent in terms of volume and its imports rising by more than 22 percent.

The rebound was strong enough for world exports to recover its peak level of 2008, but not strong enough to return to the previous growth path. On one hand, the debt crises in major developed nations, especially the European Union and the United States, continue to reduce global demand. On the other, as trade ministers are about to meet at the WTO ministerial conference from Dec 15 to 17 in Geneva, world trade is expected to grow in 2011 by 6.5 percent and rising trade protectionism spells trouble.