WTO and IMF sign cooperation agreement

WTO and IMF sign cooperation agreement

SINGAPORE (JP): The World Trade Organization (WTO) and the
International Monetary Fund (IMF) have moved a step closer
together.

WTO Director General Renato Ruggiero and IMF managing director
Michel Camdessus signed a cooperation agreement here yesterday.

Ruggiero said the agreement laid the basis for carrying
forward the WTO's ministerial mandate to achieve greater
coherence in global economic policy by cooperating with the IMF
and the World Bank while maintaining their respective
independence.

The WTO earlier concluded a similar cooperation agreement with
the World Bank.

Ruggiero said the agreement gave the WTO observer status at
some IMF executive board meetings, when they considered trade
issues. The WTO granted the IMF observer status to most of its
bodies.

Camdessus said the IMF and the WTO complemented each other:
The WTO promotes freer trade among countries, while the IMF
facilitates the expansion and balanced growth of international
trade.

To achieve its main objective, Camdessus said, the IMF
promoted sound macroeconomic policies, appropriate and stable
exchange rates and structural reforms which must underpin trade
liberalization.

He added that the IMF also encouraged its members to
eliminate restrictions on all current account transactions and
adopt outward-oriented policies.

"We are fortunate to have the forum and machinery established
under the WTO to help move the process forward. The IMF, for its
part, will join in this task through its surveillance and support
of members' adjustment and reform efforts," Camdessus said.

He noted that cooperation agreements between the WTO and the
IMF and between the WTO and the World Bank would help achieve
their complementary objectives.

"Thus, the stage is set for the WTO, the Fund and the World
Bank to work together toward the implementation of our
complementary objectives," he said. (rid)