World Trade Organisation Director-General Supachai Panitchpakdi on Wednesday called for a resumption of stalled multilateral talks in the backdrop of a stagnation in global trade flows in the first half of 2003. During the current year, the WTO estimated the growth of world merchandise trade to remained unchanged at 3 per cent.

"This sluggish performance in global trade and the prospects for weak trade expansion in 2003 reinforces the already pressing need for WTO member governments to get global trade negotiations back on track," Panitchpakdi said in a statement, following the release of the WTO's International Trade Statistics 2003.

"The world's political leaders must focus their attention on the stalled Doha Development Agenda and demonstrate their willingness to spur the global economy through greater trade liberalisation and more equitable trade rules," he added.

WTO's International Trade Statistics said the sluggishness of trade reflected the weak growth in the Organisation for Economic Cooperation and Development countries, especially in western Europe.

"Uncertainty about the global economic prospects increased in the early months of 2003 due to the emergence of the Severe Acute Respiratory Syndrome and the tensions in the Middle East. While the economic impact of Sars was largely confined to one region (East Asia) and a few sectors (tourism and air transportation), the situation in the Middle East contributed to an increase in energy prices worldwide and had thereby an impact on the global recovery," it added.

The report said that in 2002, world trade recovered from its steep decline in 2001 with average growth of merchandise trade limited to 3 per cent in real terms, half level observed in the 1990s.

The recovery was attributed to strong import demand in developing countries in Asia, transition economies mainly from eastern Europe and the United States. Sluggish demand in western Europe and lower imports in Latin America pulled down the growth rate.

The report has picked out China for the high growth rate of trade and said that in the 1990s, trade grew three times faster than the global average, while between 2000 and 2002 China's imports and exports rose 30 per cent when global trade stagnated.

The International Trade Statistics has, however, criticised the increased trend of regional trade agreements.