WTO chief urges governments to break trade deadlock within six months

October 11, 2006 - 0:0
GENEVA (AFP) -- World Trade Organization chief Pascal Lamy on Tuesday urged governments to do all they can within the next six months to revive stalled talks on reducing barriers to global commerce.

"The window of opportunity we have is limited," he told a session of the 149-nation WTO. "If we are to have a chance of finishing in 2007, the space to move is somewhere between November and springtime, which appears to be the latest time to get the breakthrough we need."

Bitter differences among trading nations forced the suspension of the Doha Round talks in July.

"The present time-out in our negotiations should allow us to think more creatively about how trade, development and growth can fit together into a coherent whole," said Lamy.

The round of multilateral trade talks began in the Qatari capital Doha at the end of 2001, with the goal of reducing subsidies, tariffs and other barriers to commerce and raising living standards in developing countries.

But the negotiations have consistently been dogged by disputes between rich and poor nations, as well as among wealthy players such as the United States and the European Union, over the concessions required.

The Doha Round was originally meant to end in 2004, but the farm trade issue has proven a major stumbling block. Lamy said it was still "the key" to unlock the rest of the talks. However, he said that he currently saw "no visible indications of flexibilities."

Developing countries are demanding deeper reductions in duties on agricultural imports imposed by rich nations, as well as bigger cuts in farm subsidies which are accused of helping farmers in the wealthy world to outplay their poor competitors.

Rich countries, meanwhile, want key emerging nations such as Brazil and India to offer more open markets for industrial goods and services, such as banking and telecommunications.

The European Union and United States have also engaged in bitter arguments over agriculture. Brussels is demanding more reductions in U.S. farm subsidies, while Washington says proposed European tariff cuts do not go far enough.