Hopes for WTO trade deal rise as core states agree

Five core members of the World Trade Organization (WTO) ended hours of bargaining early today with an accord that could open …

Five core members of the World Trade Organization (WTO) ended hours of bargaining early today with an accord that could open the way to a deal on a trade pact by the full membership, a leading negotiator said.

The five are the United States, the European Union, Australia, India and Brazil, and these nations are considered to represent a wide range of trade interests within the 147-state body.

The WTO has set itself until midnight tomorrow to seal outline deals in four key areas - farm and industrial goods, services and a new customs' code - in a bid to put its troubled Doha Round of free trade negotiations back on track.

However, a number of other members, including Switzerland, suspicious at the leading role assumed by the five, have warned that they will not be pushed into a deal just because the big trading powers back it.

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Negotiators are struggling to get agreement on a framework for the next stage of the Doha Round, launched in the Qatar capital in 2001 but effectively derailed since the collapse of a WTO meeting of trade ministers in Cancun, Mexico last September.

Such a deal would let them say the Doha Round was back on track, but failure could postpone for years further progress on liberalising trade, with its promise of a multi-billion-dollar boost to the world economy, trade officials say.

The central problem is farm trade reform, and the future of rich power subsidies.

Developing countries insist a first draft issued by the mediators several days ago ignores many of their basic concerns, while some richer nations - including Japan and Switzerland - say its provisions for lowering tariff barriers would hit farmers vital to their economies.