MercoPress. South Atlantic News Agency

Increased chances for global trade accord, says WTO Lamy

Lamy: "Reaching an agreement is possible"

World Trade Organization Director-General Pascal Lamy said the chances of success for reaching a world-trade agreement have increased as a result of talks before trade ministers meet next week in Geneva.

Lamy made the remark in Geneva while presenting a WTO report in advance of the meeting in which ministers will decide the fate of the World Trade Organization's Doha Round of free-trade talks. "The chances of reaching an agreement have improved" said Lamy adding "there are more chances for convergence, although I wouldn't rate them at this stage above the 70 or 80 percent, which in my view would be the comfort zone". After seven years of negotiations Lamy acknowledges the round has reached a decisive phase. "What members achieve together next week will be judged as an indicator of the international community's willingness and ability to sharing the management of globalization in an effective and equitable manner" he said. Ministers from about 30 countries will meet in Geneva next week in pursuit of a breakthrough in the multilateral talks, launched in Doha in November 2001 to open up world trade and help developing countries export more. Last week, WTO mediators presented revised proposals in the core areas of agricultural and industrial goods trade, which they said had reduced the options for ministers to consider after recent negotiations narrowed gaps on technical issues. Lamy said that reaching a trade deal is decisive but the world economy could overshadow an agreement. He said that economic research indicated that a Doha deal could boost the world economy by nearly 50 US dollars billion a year. However he admitted that recent surveys on globalization show most countries are tentative about international trade benefiting their countries. "Recent surveys on globalization in almost 50 developing and developed countries show that large majorities of people continue to believe that international trade benefits their countries, but accompanying this belief are fears about the disruptions, about the downsides of participating in the global economy, be it job loss, inequality or increased marginalization," said Lamy. The WTO chief Lamy said that reaching an agreement is particularly important given the "dire" state of the world economy and warned that "if we don't do that, we will add one more dark cloud to an already quite impressive number". Many analysts believe next week is the last chance to push the talks forward before US election and change in administration next January. Developing countries want rich nations to open up their markets for food and reduce protection for their farmers by cutting tariffs and subsidies. In return rich countries are seeking a bigger share of the growing markets for industrial goods and services in emerging developing countries, through tariff cuts and liberalization.