Trade rows 'imperil world order'

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Failure to reach a global trade deal would have severe consequences, Brazil's chief negotiator has warned.

Foreign minister Celso Amorim said the whole world order would be under threat if stalled discussions on reducing trade barriers could not be revived.

Attempts to make progress resumed on Sunday as officials from the G20 group of developing countries, the US, the EU and Japan met again in Brazil.

Talks broke down in July amid ongoing disagreements over agriculture.

'Excellent opportunity'

The Doha round of talks at the World Trade Organization (WTO) was intended to favour poorer nations but the likelihood of securing a hoped-for agreement by the end of the year look very slim.

US trade representative Susan Schwab, WTO director general Pascal Lamy, EU trade commissioner Peter Mandelson and Japanese agriculture minister Shoichi Makagawa are holding a series of face-to-face meetings with developing countries in Rio de Janeiro.

What is at stake is the international order Celso Amorim, Brazilian foreign minister

Brazil and other G20 members have demanded that wealthier countries take the lead in trying to re-energise discussions.

Mr Amorim said the two-day meeting - which began on Saturday - was an "excellent" opportunity to get trade talks back on track but said the consequences of failure were stark.

"What is at stake is the international order," Mr Amorim said.

"If we do not produce results that preserve the multilateral system in the trade arena, how are we going to preserve the international order in the face of terrorism, nuclear proliferation, drug trafficking and smuggling," he added.

Any progress is likely to hinge on the US and EU making concessions on cutting agricultural subsidies.

The EU protects its farmers from competition through steep import tariffs, while the US government pays around $20bn a year in farm subsidies.

Going further

A senior British minister has argued that the EU will have to cut its £30bn programme of farm subsidies if it wants the talks to succeed.

"Developed country agriculture remains the main barrier to reaching a deal," Ed Balls, chief secretary to the treasury, told a meeting of EU finance ministers in Finland.

Concessions on agriculture are key to breaking the impasse

"All countries, including the EU, will need to demonstrate their willingness to go further."

Negotiators have agreed to meet in Geneva later this year but no major breakthrough is expected before November's US congressional elections.

If the Doha round is to succeed, talk must resume very soon after that since President Bush will lose his current authority from Congress to negotiate trade deals next July.