A new report from the WTO and the Organisation for EconomicCooperation and Development, to be launched in Geneva next week,will find that projects to help poorer countries reach exportmarkets were edging closer to fruition. "No specific indication of the utilisation of such a packageis available yet," he said. Aid for trade was promised to poorer nations at a 2005 WTOmeeting in Hong Kong to help "to build the supply-side capacityand infrastructure they need to take advantage of trade openingand to connect with the global economy." Diplomats say the funds are seen as a sweetener to encouragedeveloping states to accept exposing their industries to morecompetition under a new global free trade accord, which has beenunder negotiation since 2001. "Even in the United States, spreads on opening new lettersof credit are up, at 100-200 basis points depending on thequality of risk," he said, adding: "The WTO, along with partnerinstitutions, will continue to monitor the market situation." FREE TRADE SWEETENER Lamy's protectionism report, his third review of tradebarriers imposed in response to the world's economic slide, alsoraised questions about when G20 states and international lenderswill disburse $250 billion in trade support they proposed inApril. "In Latin America, some of the smallest Central Americancountries, or larger but poor countries, also need support," hesaid, further noting that several eastern European countriescurrently have no access to new trade credit in the markets. The African Development Bank has seen a 50 percent drop intrade finance deals since January 2009, and many Asian exportersrely on the Asian Development Bank and the World Bank's privatesector arm "to facilitate their trade transactions due to thedeterioration of the country risk," Lamy found. "In other areas of the world the situation has notimproved," he said in the report, which will inform discussionat a July 6-7 WTO meeting involving the heads of major regionallenders and the World Bank and International Monetary Fund.

Interventions from the Brazilian, Indian and Chinese centralbanks and governments have stabilised trade finance costs thatshot up during the credit crunch, Lamy said, estimating theirlocal spreads are now 150-200 basis points above policy rates. "Anecdotal evidence shows that the global market situationremains tense, with increased payment defaults and high costs ofcredit," WTO Director-General Pascal Lamy said in a report onprotectionism whose main findings were made public on Thursday. * WTO chief says global market for trade finance still tense Bonds  |  China  |  Brazil * Exporter lending costs stabilise in Brazil, India, China * Africa, Asia, Latin America, Eastern Europe "need support" By Laura MacInnis GENEVA, July 2 (Reuters) - Exporters are struggling to getthe loans they need to ship their goods, the head of the WorldTrade Organisation said ahead of a high-level meeting on poorcountries' aid-for-trade needs. The net outflows atGottex in the last few quarters had mainly been caused bydeleveraging and rebalancing effects as a result of massivemarket turbulence," Bueeler said.(Reporting by Jason Rhodes; Editing by Mike Nesbit). Gottex said in April its assets under management fell to$8.5 billion at March 31 from $9.6 billion at year-end as clientdeleveraging and redemptions took their toll "This is a very promising announcement. Shares in Switzerland-listed Gottex were up 7.62 percent by0914 GMT, against a 0.7 percent fall in the Swiss all-shareindex..SSHI "The return of big and known institutional investors tohedge funds signals trust in Gottex by sophisticated investors,plus the ongoing demand for alternative investments after theannus horribilis in 2008," said Kepler Capital Markets analystMathias Bueeler.

"It validates our vision that institutional hedge fundinvestment providers in the future will require a broad range ofproducts and services that complement clients' in-houseinvestment capabilities," he said in a statement. The fund of hedge funds provider said the mandate was forone of the Nestle's pension fund's hedge fund portfolios andGottex CEO and Chairman Joachim Gottschalk said he was verypleased with the award of such a major mandate. * Swiss fund manager to manage pension fund portfolio * Nestle mandate seen as sign of returning confidence * Shares up 7.6 pct(Adds more details, comments by company, analyst) ZURICH, July 2 (Reuters) - Gottex Fund Management HoldingsLtd (GFMN.S) said on Thursday it had won an investment andadvisory mandate from Nestle (NESN.VX), the world's biggest foodgroup, boosting its shares. Earnings per share target of smaller firms would be revisedupwards by 8 to 10 percent if the tax holiday was extended,Harit Shah, a sector analyst with Angel Broking, said. "If it does not happen in the budget, it will have anegative impact on sentiment," he said (Editing by Muralikumar Anantharaman) Stocks. "Larger vendors are likely to continue expanding their SEZpresence," it said, referring to special economic zone. Morgan Stanley said in a report last month if the taxholiday was extended it would benefit smaller firms such asHexaware (HEXT.BO), Mphasis (MBFL.BO), and Patni ComputerSystems (PTNI.BO) more than larger outsourcing firms.

PINC Research said Infosys' earnings per share would dropto 131.35 rupees in the fiscal year starting April 2010 if thetax rate goes up to 22 percent compared with the brokerage'sforecast of 141 rupees at the current tax level of 16 percent. Infosys gets 90 percent of its revenue from units locatedin tax-free technology parks, PINC said in a report. TOUGHER FOR SMALLER FIRMS Analysts said while large companies had the option to moveto special economic zones to avail tax incentives, smallerfirms would not find it feasible to relocate operations as highrentals and far-away locations of such zones were barriers forthem. An army of low-cost English-speaking engineers has drivenan outsourcing boom in India, but turmoil in global markets anda recession in the United States, which accounts for more thanhalf the sector's revenue, have halted the scorching pace ofgrowth.Infosys (INFY.BO) Chief Financial Officer V.Balakrishnan has said the Nasdaq-listed firm's (INFY.O) taxrate would increase to 20 to 22 percent from 15 to 16 percentnow if the tax holiday ends. "The budget isexpected to focus on maintaining an environment conducive tothe future growth of this largely export-oriented industry." Ramachandran said an extension would boost sentiment at a timewhen the software services firms were battling a severedownturn in technology spending and pressure on prices.