WTO mediators try to pave way for Doha deal

Geneva: World Trade Organisation (WTO) mediators sought to advance long-running trade talks on Friday by issuing new negotiating texts, but acknowledged much work remained before ministers could meet to clinch a deal.

As expected the revised drafts for agriculture and industry did not make any changes to existing proposals for the headline cuts in tariffs and subsidies, where politicians will have to take the tough decisions.

But they narrowed the gaps on a host of technical issues, reflecting intense negotiations over the past six months.

"I don't think we're ready for a ministerial meeting," said Canada's WTO ambassador, who chairs the industry talks. "If you look at these two texts together you would have to conclude that an awful lot of issues remain open," he told a news conference.

Trade-offs

Stephenson said further negotiations were needed on the texts, followed by trade-offs between the agriculture and industry proposals before handing over to the politicians.

Trade ministers say concern about the world economy triggered by the credit crunch gives new resolve to complete the Doha round, launched in November 2001 to boost the world economy and help poor countries export their way out of poverty.

"The continuous expansion of multilateral trade is an insurance policy against market instabilities and even against financial turbulences," WTO Director-General Pascal Lamy said.

"At the time where clouds are darkening over the world economy the Doha round is the only global initiative that may rebuild confidence of world business, workers and consumers," he said on Wednesday.

But economic worries could fuel protectionist sentiments, making it harder for politicians to sell a trade deal at home.

"I really get the impression that the sense of economic crisis is making people more cautious about signing a trade deal rather than more enthusiastic," Carin Smaller, director of the Trade Information Project at the Institute for Agriculture and Trade Policy, said earlier on Friday.

Close scrutiny

The United States said that it would analyse both texts closely. Any breakthrough would require a strong outcome in agriculture, industry and services, said a statement from Gretchen Hamel, spokes-woman for the US Trade Representative.

New Zealand's WTO ambassador Crawford Falconer, who chairs the farm talks, said his original proposals last July for cuts in tariffs were now widely accepted.

"The headline numbers haven't changed," Falconer said of subsidies, where he had proposed a range of cuts. "The same political choices are there."

And there is much greater clarity on a range of technical issues, including special treatment for developing countries, he told a news conference.