New data shows that the developing world's share of global trade has surged to a 50-year peak. Rising oil and commodity prices coupled with vigorous global trade growth meant developing countries saw their share in world merchandise trade rise sharply in 2004 to 31%, the highest since 1950, according to WTO figures released this morning.

The data provides clear evidence that trade liberalisation continues to play a growing role in economic activity and is increasingly important for development and poverty alleviation. More countries are engaging in international trade and participating more actively in setting and negotiating trade rules.

Most notable is the rise in Africa's exports, which grew by an impressive 30% last year, following on from rising strongly in 2003. This marks the highest growth in African exports since 1980. This trade growth has been associated with an improved expansion in production, which registered more than 4% growth for the continent in 2004. Economists predict it will continue at the same rate next year.

Trade is the engine by which countries can create wealth, it is key to sustainable development and a higher standard of living. While the trend is encouraging, trade expansion is still hampered by barriers which must be brought down for prosperity to spread. These barriers that exist are a collossal drag on economic growth. The best way to reduce these barriers and to ensure more equitable trading rules for all nations is to complete the multilateral Doha Development Agenda round of trade negotiations. If that proves impossible the advanced nations should opt for unilateral free trade, a policy which Britain chose in the nineteenth century when it was the pre-eminent global economic power. There is no reason why the major global economic powers of today, namely the U.S., E.U. and Japan could not implement such a policy without delay.

The world economy grew at 4% in 2004, the strongest annual growth rate in more than a decade. Global GDP last year was also more broadly based regionally than in the three preceding years, providing a solid foundation for an acceleration in world trade growth. World merchandise trade rose by 9% in real terms in 2004, the best annual performance since 2000, and more than twice as fast as world output (GDP measured at market rates) in 2004. Trade growth in 2004 also significantly exceeded average trade growth recorded over the last decade.

This strong economic backdrop suggests that this is a good environment in which to open up the world economy completely. It might not be as good-as-it-gets, but it as good as its been for a long time. Now is the time for G7 policy makers to seize the opportunity.