Four nations accused over Doha talks

The US has accused South Africa, Argentina, India and Brazil of jeopardising the Doha round of world trade talks by thwarting…

The US has accused South Africa, Argentina, India and Brazil of jeopardising the Doha round of world trade talks by thwarting fresh efforts to reach a deal on cuts to agricultural and industrial tariffs.

Susan Schwab, US trade representative, said a small group of countries had the power to "destroy the Doha round" and cited the four nations as obstacles to progress.

The US is keen to advance quickly with negotiations on the basis of draft agreements advanced by the World Trade Organisation (WTO) to open markets to farm and manufactured goods. But some WTO members argue that the proposed cuts that poorer nations are asked to make in industrial tariffs are far bigger than the concessions being asked of richer countries on agricultural products, thus undermining the aim of the Doha round to focus on farming as the issue of most concern to developing countries.

President George Bush has made reviving the talks his economic priority at the Asia Pacific Economic Co-operation summit in Sydney, which brings together 21 countries that collectively generate half of global trade.

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Ministers at the summit of Pacific Rim nations agreed yesterday to accelerate the trade talks, which resumed this week in Geneva. The Japanese trade minister said the negotiations were entering their final phase and called for convergence, after hearing appeals from Pascal Lamy, WTO director-general.

"We are starting to negotiate," Ms Schwab said, adding she hoped it would be possible to "fill in the blanks" in the draft proposals by early October with specific targets for tariff reductions on the most sensitive products and sectors.

The US hopes the expression of support from Apec members - including China, South Korea and Indonesia - will help isolate those advanced developing countries resisting an agreement.

This week Peter Mandelson, European Union trade commissioner, said all countries had to make compromises, but emphasised the need for the US to offer deeper cuts in farm subsidies. "We are in a stalemate on this and I believe that the US holds the key to unlocking it," he said.

Christine Lagarde, French economic minister, last week said she did not expect a global trade deal in the foreseeable future because the divisions among members remained "too wide". The Australian government also pointed at the US as one of the main blockages to progress.

The draft agreements were issued by the WTO after bilateral negotiations between the US and the EU produced a breakthrough on farm goods, but then failed on a wider deal this summer when talks were extended to include India and Brazil.