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Push to revive world trade talks World trade talks set to restart
(about 2 hours later)
Trade ministers from some 30 countries are meeting in Davos, Switzerland, to see if they can revive negotiations on liberalising global trade. Trade ministers from some 30 countries have agreed that full-scale global trade talks should resume quickly.
However the ministers' statement was short on specifics and its wording revealed that they have not really moved much closer to reaching a deal.
Politicians from both developed and developing countries had said it would be "catastrophic" if the talks failed.
Meeting at the World Economic Forum a year ago, ministers had agreed a more ambitious deal that came to nothing.
The talks in Davos, Switzerland, had been seen as one of the last chances to make a decisive move towards reviving negotiations on liberalising global trade, before the fast-track authority of US President George Bush runs out in July.
After that deadline, US Congress could block key parts of any deal, which would scupper any treaty.
EU trade commissioner Peter Mandelson said "the alternative to what's on the table is not the perfect deal, but no deal at all."
Once again agriculture appears to have been the sticking point in the negotiations.
Mr Mandelson said any deal needed to strike "a balance between the need to advance decisively on farm trade liberalisation and the need to respect the reasonable agricultural sensitivities of the less competitive and those with large subsistence farm sectors."
The negotiations were suspended last July amid sharp differences over farm subsidies and import tariffs.The negotiations were suspended last July amid sharp differences over farm subsidies and import tariffs.
The ministers' talks take place on the sidelines of the World Economic Forum. On Friday, Brazil's President Luiz Inacio Lula da Silva had told the World Economic Forum that rich nations should show flexibility to help conclude a vital agreement.
Addressing the forum, Brazil's President Luiz Inacio Lula da Silva urged rich nations to show flexibility to help conclude a vital agreement. "We have never been so close to doing a deal like this," he told the gathering of political and business leaders..
"We have never been so close to doing a deal like this," he told the gathering of political and business leaders during a session on Friday.
Lula said Brazil was ready to make concession if Europe and the US were also prepared to move.Lula said Brazil was ready to make concession if Europe and the US were also prepared to move.
If it succeeds, great. If it fails, it will be catastrophic Tony Blair UK Prime MinisterIf it succeeds, great. If it fails, it will be catastrophic Tony Blair UK Prime Minister
A trade agreement could help ease poverty in many countries and inject billions of dollars into the global economy, he said.A trade agreement could help ease poverty in many countries and inject billions of dollars into the global economy, he said.
South African Trade Minister Mandisi Mpahlwa told Reuters his country was very concerned at the prospect of failure. South African Trade Minister Mandisi Mpahlwa had told Reuters his country was very concerned at the prospect of failure.
"We never had a round with so much on the table and the likelihood of losing it all is quite big," he said."We never had a round with so much on the table and the likelihood of losing it all is quite big," he said.
However, British Prime Minister Tony Blair expressed optimism that the World Trade Organization's (WTO) talks, known as the Doha Round, could resume, amid signs that everyone was prepared to make concessions.However, British Prime Minister Tony Blair expressed optimism that the World Trade Organization's (WTO) talks, known as the Doha Round, could resume, amid signs that everyone was prepared to make concessions.
"If it succeeds, great. If it fails, it will be catastrophic," Mr Blair said."If it succeeds, great. If it fails, it will be catastrophic," Mr Blair said.
Business groups have also been stepping up calls for governments to reach a deal.Business groups have also been stepping up calls for governments to reach a deal.
WTO Director General Pascal Lamy is pushing for progress by July The Doha Development Agenda was launched in 2001, but has repeatedly stalled.WTO Director General Pascal Lamy is pushing for progress by July The Doha Development Agenda was launched in 2001, but has repeatedly stalled.
The 150 members of the WTO have agreed that the current trade round should be designed to help developing countries, while opening up new markets for industrialised nations.The 150 members of the WTO have agreed that the current trade round should be designed to help developing countries, while opening up new markets for industrialised nations.
The US and EU want developing countries like Brazil and India to open their economies to industrial goods and services.The US and EU want developing countries like Brazil and India to open their economies to industrial goods and services.
Developing nations argue that the US and the European Union must cut agricultural subsidies and tariffs if progress is to be made.Developing nations argue that the US and the European Union must cut agricultural subsidies and tariffs if progress is to be made.
There is some urgency to the talks, because US President George Bush will lose his fast-track authority for trade negotiations in July. After that date US Congress could scupper a deal by blocking key provisions of the treaty.
'Fast-track' deals
The BBC's economics correspondent, Andrew Walker, says there have recently been signs that the US and EU are more willing to move in this key area.
Progress here will not be enough to produce a full agreement, he says, but it could be a big factor in getting the negotiations moving once again.
The ultimate aim of the Doha Round is a wide-ranging deal to reduce barriers to trade in agriculture, industrial goods and many types of services, from banking to tourism and computing.
If the talks do resume in earnest, the US government will have to try to persuade Congress to renew President George W Bush's "fast-track" authority to approve trade deals.
This is due to expire at the end of June and WTO Director General Pascal Lamy is trying to encourage member countries to make sufficient progress by then to convince the now Democrat-controlled US Congress that it is worth renewing the arrangement.
But if Congress decides not to renew the presidential authority, any WTO deal risks being picked apart by US lawmakers, correspondents say, meaning the Doha negotiations could be delayed for several more years or even collapse.