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)