MOREPRESS RELEASE
EMBARGO:  NOT FOR PUBLICATION UNTIL
1130 GMT 23 MAY 2001
PRESS/226
18 May 2001
(01-2419)
WTO SECRETARIAT RELE ASES 2001 ANNUAL REPORT
Global trade and output growth in 2000 were the strongest in more than a decade, with all
regions benefitting from the stronger world economy, according to WTO Annual Report 2001
published today (23 May).  Merchandise trade expansion in real terms in 2000 matched the best
annual rates observed over the last five decades.  However, a deceleration of economic growth began
in the final quarter of 2000, clouding the trade prospects for 2001.
The 150-page report includes an overview of th e developments in the international trading
environment and a summary of WTO activities.  The introduction highlights the launching of the
negotiations on agriculture and services, the assistance provided to the least developed countries and
various issues arising out of the Seattle Ministerial.  It also includes an account of the activities of the
various WTO bodies and committees.
The main findings of the preliminary review of world trade developments in 2000 reported in
Chapter II include the following:
While all regions reported faster nominal trade growth, exports and imports of developing
countries expanded by more than 20%, lifting their share in world merchandise trade to the highest
level in the last 50 years.  Various factors contributed to this outcome, including the economic
recovery in Latin America and East Asia, the shar p rise of oil prices and stronger import demand in
developed countries.
The value of world merchandise trade  rose by 12.5% in 2000 – twice the average for the last
decade – to reach nearly 6.2 trillion dollars.  World commercial services trade  is estimated to have
expanded by 5% (to 1.4 trillion dollars) in 2000, the fastest annual growth since 1997.  For the second
year in a row, the value of  commercial services trade expanded less rapidly than merchandise trade,
but for the 1990-2000 period its 6% annual growth matched that of merchandise trade.PRESS/226
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MOREIn 2001, the world economy is retreating from the high growth path seen last year, dimming
the prospects for world trade in 2001.  The volume of world merchandise trade is expected to grow by
7%, a marked reduction from the estimated 12% in 2000.
Other highlights from the review of world trade developments are noted below.
• The year 2000 witnessed not only outstandingly high global trade and output growth
of 12% and 4%, respectively, but also an exceptionally large excess of trade growthover output growth.
• Prices of all internationally-traded goods remained almost unchanged from the
preceding year as sharply higher prices for fuels were offset by declines in the prices
of manufactured goods.  In 2000, prices of manufactures recorded the fifthconsecutive annual decline, causing average prices to fall to their lowest level in 10
years.
• Real oil prices reached their highest level since 1985 and the share of fuels in world
merchandise trade is estimated to have recovered to somewhat more than 10%, close
to its share in 1990.
• The regions with a large share of fuels in their merchandise exports (the Middle East,
Africa and the transition economies) recorded outstanding export growth – between
25 and 50% in 2000.
• Asia's merchandise import growth was the strongest of all the regions (23.5%) and
exceeded for the second year in a row its export growth.
• North America's merchandise import growth (18%) was second only to that of Asia
and again stronger than its export expansion (13.5%).
• The growth in the dollar value of Western Europe's merchandise exports and imports
was by far the lowest of all regions, largely due to the further depreciation of the euro
and other European currencies vis-à-vis the dollar.
• North America and Latin America recorded both double digit export and import
growth for commercial services.
• Asian exports of commercial services rose by 13% boosted by the marked
acceleration of services export growth by Asia's three leading exporters:  Japan;
Hong Kong, China and China.  The near stagnation of Japan's services imports –
which accounts for one third of the Asian regional total – was the principal factor in
the subdued expansion of Asia's commercial services.
• Expressed in euros, Western Europe's commercial services trade expanded by about
14% which indicates an acceleration in both nominal and real terms.  In dollar terms,
however, Western Europe's commercial exports and imports decreased slightly.
• Oil markets.  The sharp oil price variations which, over the last three years recorded
their highest and lowest levels in 15 years, have left their mark on international trade
flows.  The share of fuels in world merchandise exports fell to 6.5% in 1998, the
lowest share in three decades but recovered to 10.5% in 2000.PRESS/226
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• The swings in oil prices have had a dramatic impact on the export earnings of oil
exporters. At least 18 fuel exporters recorded total merchandise export growth inexcess of 50% and in 2000.  For about 30 countries fuels account for more than one
third of their merchandise exports.  While the developing countries (and also the
LDCs) are – as a group – net fuel exporters, the majority of the developing countries
are net-importers.
• In the second half of the 1990s, Asia replaced Western Europe as the largest net-
importing region.  This development can be attributed to the buoyant rise of fuels
imports into fast growing developing Asia.  The Middle East consolidated its position
as the world's leading fuel exporter and is likely to strengthen it further in the future.
END