European Union trade chief Peter Mandelson said today he was "very hopeful" that a breakthrough deal could now be done in world trade talks and said it would give the global economy a boost.
"What's on the table is not perfect, it's not beautiful but it's finally put together what will be a genuine boost for the world economy and particularly good for developing countries," Mr Mandelson said after a make-or-break meeting of trade ministers.
Indian Commerce Minister Kamal Nath sounded more cautious, saying: "There are certain areas of concern, there are certain areas of consensus."
Ministers from around 30 WTO member countries met to discuss new compromise proposals drawn up by WTO chief Pascal Lamy to rescue the Doha round of negotiations, launched in 2001. Without a breakthrough, there could be years more of delay.
"There is an emerging deal but not a done deal," Mr Mandelson said, adding the reactions of almost all countries at today's meeting was positive.
He was due to present the proposals to EU member states on Saturday. France, currently president of the bloc, and other countries have previously expressed concern about European farming concessions needed to get a WTO agreement.
"I know it will be difficult to swallow for some and a difficult sell for others," Mr Mandelson said.
Earlier today, Mr Lamy told delegates the talks were at risk of collapse after four days of “painfully slow” progress. He described the situation as “critical, edging between success and failure. The next 24 hours are crucial. Positions must move quite radically. If we do not see this rapid progress toward convergence, the deal will not happen.”
The trade round began seven years ago with the aim of helping poor nations benefit from trade liberalisation. Negotiators from rich countries want more assurances that emerging economies will open their markets to more foreign goods while developing nations are pressing wealthy governments such as the US and the EU to cut agricultural tariffs and aid to their farmers.
Mr Lamy's decision to call the summit was a gamble aimed at pressing key governments in the WTO to bridge divisions in a short period. He told negotiators last month that without an accord on agriculture and industrial goods by the end of July, the chances for a successful conclusion to the trade round are less than 50 per cent.
For the meeting to succeed, the WTO's 153 members will have to agree on so-called modalities - the key percentages for tariff cuts that would form the basis for a comprehensive deal.
Agencies