Falling value of U.S. dollar, rising oil prices not enough to slow global trade, WTO says.

Feedstuffs, November, 2004 by Ian Elliott

The World Trade Organization said Oct. 25 escalating oil prices and a falling U.S. dollar are not likely to dampen a boom in the growth of the volume of world trade this year, but fuel costs may hurt in 2005.

The trade watchdog said it expects the volume of international trade to expand 8.5% through the rest of this year, a "significant improvement" over last year.

Merchandise trade reached $7.3 trillion last year, with the global trade in services growing to $1.8 trillion.

"While the price increases for oil and other commodities may dampen growth in trade and overall output in 2005, these effects are being outweighed in 2004 by vigorous trade expansion in many countries and stronger-than-expected recovery in several others," WTO said in a...