A bitter row, fuelled largely by Asian anger against the United States over who should be the new director-general of the World Trade Organisation (WTO), has pushed the 134-member body, a pillar of global economic co-operation, towards paralysis.

Diplomats suggested the resentment that has bubbled to the surface over two days of heated discussion in the WTO's General Council could put at risk the launch of a fresh round of negotiations to open wider global markets for goods and services that had been expected to start next year.

Two days after WTO chief Renato Ruggiero stepped down at the end of his four-year term, and eight months after campaigning by would-be successors began, no decision was in sight and core delegations were far apart on how to resolve the impasse.

Hours of argument over the weekend left the two remaining candidates - former New Zealand prime minister Mr Mike Moore and Thailand's Deputy Prime Minister Mr Supachai Panitchpakdi - still on the sidelines.

"This institution will stop, it will completely stop, until we have a new director-general," US ambassador Rita Hayes, whose country strongly supports Mr Moore, said.

Ms Hayes insisted that efforts should continue at another session called for today to build consensus - the only method the four-year-old WTO has used until now to reach decisions - around Mr Moore (50), a feisty politician from New Zealand's Labour Party. Mr Moore also has wide backing in many non-Asian developing countries.

But Malaysia's Mr Hamidon Ali, speaking for the south-east Asian ASEAN grouping whose candidate the Thai is, said the issue should be put to a vote. The proposal is backed by Pakistan, India, Mexico and some African and Middle Eastern countries.

Japan, the world's third trade power, said consensus-building efforts should now focus on Mr Supachai, though it would also favour a vote if there was no other way out.

The United States and many other delegations oppose a vote because they fear it could create a precedent for other WTO decisions on trade policy which affect domestic laws, leading to a majority dictate in the organisation which would not be accepted by national legislatures. Weeks of tension came to a head on Friday when General Council Chairman Mr Ali Mchumo of Tanzania, who has been consulting member countries in a bid to create a consensus around one of the two candidates, recommended that delegates choose Mr Moore.

Mr Mchumo said the New Zealander had a numerical lead of 62 against 59 among countries who had expressed a preference. He also said Mr Moore had wider global support, including in Latin America and Europe, than 52-year-old Mr Supachai.