An international financial regulation mechanism with binding force is needed to address the current financial crisis, the head of the World Trade Organization (WTO) said on Saturday.
The mechanism should contain binding regulations as well as supervision and sanction measures, Pascal Lamy said in an interview with the French-language Le Monde newspaper.
Describing financial sector as a "black hole" in the international system of governance, the WTO chief said with only loose international regulation in the financial sector, effective authorities that go above nations is still lacking.
But he admitted that accepting a rigid international supervision mechanism is politically sensitive either to the United States or emerging economies.
The WTO chief reiterated that protectionism is not a good option in face of global financial crisis. Just as the Asian countries which suffered financial turmoil in 1997 relied on exports to walk out of the crisis, world trade will offer effective guarantee in time of crisis, Lamy said.
(Xinhua News Agency November 9, 2008)
