Trade talks at Davos 'have momentum'

A trade deal to help the world's poorest countries could yet be saved, a spokesman for British Prime Minister Tony Blair suggested…

A trade deal to help the world's poorest countries could yet be saved, a spokesman for British Prime Minister Tony Blair suggested today.

Mr Blair is attending the annual World Economic Forum meeting in Davos, Switzerland, where the fate of the so-called Doha talks to slash trade subsidies has become once again a hot topic as G8 countries assess promises made in 2005 to help Africa.

Mr Blair's spokesman said Davos could be instrumental reviving the talks, stalled by bickering between rich and developing nations about sharing out the cost of dismantling protective commerce barriers.

"People were assuming that this was running into the sand. That's not right. There is now a renewed momentum," the spokesman said.

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"There is now a realisation that a deal is there if people have the will to make a deal. And there is a realisation that people are prepared to move on all sides if all sides are prepared to move," he said.

Mr Blair has discussed the Doha round with President Bush and German Chancellor Angela Merkel and will meet Brazilian President Luiz Inacio Lula Da Silva on Friday to look at ways of making progress before heading into a meeting of world trade ministers, the spokesman added.