The hurricane affecting financial markets has not significantly impacted trade flows yet. The lack of regulation, which many blame for the current financial crisis, is prompting calls to strengthen commercial rules by reaching a new trade agreement. China's deputy WTO ambassador, Xiang Zhang, believes that concluding negotiations for a new trade deal would send a positive message to the global economy and business community. Conversely, Zhang warns that failing to reach a deal after seven years could result in a crisis of confidence in business. WTO Director-General Pascal Lamy is still hopeful for an outline deal on agriculture and industrial goods by the end of the year in the Doha round, despite the lack of progress in July. Both Lamy and EU trade chief Peter Mandelson expressed concerns last week about the potential for the financial crisis to lead to protectionism, which could harm economic growth. They emphasized the urgency of reaching a new trade deal to secure the benefits of globalization. The crisis could also divert the attention of world leaders away from trade issues, making it difficult to reach an agreement. However, the proposed $700 billion bailout for the U.S. financial industry, expected to be announced on Sunday, could help alleviate these concerns. It is important to note that any trade deal would not be finalized until at least 2009 or 2010, and even then would not have an immediate impact on trade flows due to implementation periods of up to 17 years for developing nations. This delayed economic effect would also minimize any immediate financial market impact, as changes in exchange rates or company earnings would only be seen later on. Experts believe that a deal would increase business confidence by demonstrating a reduction in barriers to business, a strong world trading system, and global cooperation. Fredrik Erixon, from Brussels trade policy think-tank ECIPE, pointed out that existing WTO agreements limit countries' ability to raise tariffs. He expressed confidence that history would not repeat itself with a return to economic nationalism amidst a financial crisis. However, the current climate of skepticism towards deregulation and criticism of Anglo-Saxon laissez-faire liberalization by French President Nicolas Sarkozy and German Finance Minister Peer Steinbrueck may hinder progress in liberalizing trade in financial services during the negotiations. During a meeting in July, governments indicated their willingness to open up markets to various services, despite the impact of the credit crunch not deterring negotiators from addressing banking issues. John Cooke, the chairman of the Liberalisation of Trade in Services Committee, highlighted the distinction between market access and financial contagion, noting that trade negotiations focus on the former while regulators handle the latter. He emphasized that as the world continues to globalize, there will be increased trade and investment, leading to greater international interdependencies among economies. Trade rounds aim not only to liberalize commerce but also to establish equitable rules for the international trading system. In the current Doha round, developing countries are pushing for the reduction of agricultural subsidies in rich nations, which artificially lower prices and harm farmers in poorer countries. Munir Ahmed, secretary-general of the International Textiles and Clothing Bureau, likened these subsidies to short-selling in the stock market. He emphasized the importance of reaching a Doha deal to regulate various aspects of international commerce, stating that the recent financial crisis highlights the need for action before opportunities are lost. With the recent growth in business, many companies have not felt the need to advocate for changes to trade rules to prevent protectionism from returning. This lack of lobbying has resulted in less pressure on governments to reach a deal, potentially leading to a reversal of tariff and subsidy cuts. New Zealand's WTO ambassador, Crawford Falconer, believes that shrinking entitlements is crucial to prevent regression in the financial world, emphasizing the importance of completing the task at hand as soon as possible.