Trade powers pick up pace of WTO rescue push

GENEVA - Ministers from the world's top trading nations intensified attempts to rescue a global commerce deal after signals that their political leaders could be more flexible.

World Trade Organisation chief Pascal Lamy warned the Doha round was doomed to failure without more room for manoeuvre and soon after the ministers from the so-called Group of Six agreed to meet again on July 23-24 and July 28-29 in Geneva.

"The moment of truth will emerge in the next two weeks," Indian trade minister Kamal Nath told reporters after brief discussions with ministers and officials from the European Union, the United States, Brazil, Japan, and Australia.

Monday's meeting in Geneva was called quickly after leaders of the industrialised G8 countries on Sunday set a one-month deadline to get the Doha round back on track.

The WTO's Doha round was launched in 2001 as a way to tackle poverty and boost the global economy. But it is now two years behind schedule and risks a delay of several more, or complete collapse, without a deal in the next few weeks.

"At this stage, the deadlock in which we are caught will lead us to failure very soon if you do not give your ministers further room for negotiation," Lamy told the leaders of the G8 and developing nations on Monday, according to a WTO statement.

European Commission President Jose Manuel Barroso said he, US President George W. Bush and Brazilian President Luiz Inacio Lula da Silva had shown they could take steps to get the round moving again at the G8 meeting in Russia.

US Trade Representative Susan Schwab said the time had come for negotiators to check what kind of concessions they can make.

"I think the next step for us is to go back to our capitals to see what sort of flexibility to bring back to the table," she told reporters after Monday's Geneva meeting.

Schwab is due to meet important congressional committees on Tuesday, Wednesday and Thursday this week.

Deadline

Monday's meeting in Geneva focussed on procedure rather than substance, India's Nath told reporters.

Key to progress is how much the United States will cut farm subsidies, how much the EU will lower tariffs on farm imports and how much developing countries will reduce barriers to industrial and service imports.

Barroso said Brussels probably had enough room for manoeuvre in its negotiating mandate from EU member states but it could ask for a new, broader one if needed. Schwab had a mandate from Bush to search for a "robust" Doha round, her spokesman said.

Leaders of emerging nations such as China, India and Brazil attended a session on trade along with G8 leaders on Monday.

G8 officials said the position of Brazil, which with India heads the influential G20 bloc of developing countries, was key after the G8 presented a united front on the talks.

"I am convinced that now is the time for us to make a political decision," said Lula, adding negotiators had no more "hidden cards in their pockets".

Without a breakthrough in the next few weeks, experts say the whole round could be put on ice for several years as the US president's "fast track" power to approve trade deals is due to expire in mid-2007.

An international business group said it was waiting to see real results.

"G8 leaders have time and again committed themselves to deadlines and results for the Doha Round that were not fulfilled," the International Chamber of Commerce said in a statement. "The business community will not be waving any flags until it sees solid progress in the few months left."

- REUTERS