World trade deal must be IMF priority - UK's Brown
(Reuters)
Updated: 2006-08-29 16:02 LONDON - British finance
minister Gordon Brown says a global trade deal must top the IMF's agenda as the
world economy faces an uncertain autumn.
Writing in Tuesday's Financial Times newspaper, Brown who heads the
International Monetary Fund's main policy-steering group, said resurgent trade
protectionism, and the suspension of the Doha trade talks last month, posed a
threat to stability.
Britain's finance
minister Gordon Brown, seen here in June 2006, praised the "resilience" of
the British economy, but warned of "tough times ahead" and promised to
"resist easy options" in an article. [AFP] |
On the home front, the Chancellor of the Exchequer said he would not
countenance inflation-busting pay rises. British inflation was running at 2.4
percent in July, above the Bank of England's two percent target.
Brown said one of the "most ominous" setbacks over the summer had been the
collapse of World Trade Organisation trade liberalisation talks.
Getting them back on track must be the focus at next month's IMF and World
Bank meeting in Singapore, he said.
"We must all wake up to the reality that, without the forward momentum a new
trade agreement would give, we risk rolling backwards to the age of
beggar-thy-neighbour protectionism and the further threats to stability that
flow from it," Brown wrote.
"Global risks remain and the world economy faces an uncertain autumn," he
added.
Brown said the British economy had shown resilience to rising inflation and
praised the Bank of England for its "forward-looking and pre-emptive" approach
in raising interest rates.
He also pledged the government would not give in to any inflationary pay
rises, reiterating its intention to base public sector pay settlements on the
2.0 percent inflation target.
"Toughness on pay is just part of a public sector reform programme ... that
also includes an 80,000 reduction in the civil service, 30 billion pounds of
asset sales by 2010 and more stretching efficiency targets," he
said.
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