International commerce risks being strangled by a gradual build-up of restrictions that could undermine policies to revive the world economy, Reuters quoted the head of the World Trade Organisation (WTO) as saying today. WTO Director-General Pascal Lamy said there were no signs of an imminent descent into intense tit-for-tat protectionism. "The danger today is of an incremental build-up of restrictions that could slowly strangle international trade and undercut the effectiveness of policies to boost aggregate demand and restore sustained growth globally," Lamy said. Many WTO members at the start of the year appeared to have kept pressures to take protectionist actions under control, he said in a report circulated to members, a copy of which was obtained by Reuters. "Since then, there has been significant slippage," he said.
