Tuesday, 25 July 2006

Mixed news from Europe, trade talks collapse

There was mixed news from Europe yesterday.

Euro zone new industrial orders rose 2.3 percent in May from April and 14.2 percent year-on-year, well above forecasts. On the other hand, the Belgian National Bank's business confidence indicator fell to 5.4 in July from June's record high of 10.1, pointing to a weaker German Ifo business climate index, while the Confederation of British Industry's distributive trades survey indicated that retail sales growth eased slightly in July.

However, from a longer term perspective, the big disappointment of the day must be the failure of the WTO negotiations in Geneva on trade liberalisation.

A five-year global effort to liberalise world trade collapsed in acrimony, driving a stake into lofty ambitions to free up global commerce and help developing nations to climb out of poverty.

The collapse of talks among six key players from the 149-nation World Trade Organisation drove its chief Pascal Lamy to recommend an indefinite freeze in the faltering negotiations.

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