US warns of trade deal delays

A deal to free up world trade could be delayed several years if no progress is made by the end of 2007, the United States said…

A deal to free up world trade could be delayed several years if no progress is made by the end of 2007, the United States said today.

Talks between the United States, the European Union, Brazil and India, aimed at reaching a breakthrough in the World Trade Organization's (WTO) Doha round, collapsed in late June, leaving the future of the long-running trade talks in doubt.

US Trade Representative Susan Schwab, criticising India and Brazil over the breakdown of talks in Potsdam, Germany, said some countries wanted Doha to fail and it was now crucial for some new progress before 2008.

"I think there is a sense that if we don't get it done this year, Doha could well go into hibernation for several years to come," Ms Schwab said.

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"There are some countries who really don't want a Doha round outcome," Ms Schwab said. "I think that's unfortunate."

While she did not specifically name India or Brazil as wanting the talks to fail, Ms Schwab said the United States was surprised at "how rigid and inflexible" they were in Potsdam.

The Doha round was launched nearly six years ago with the aim of freeing up world trade, boosting global growth and helping to lift millions of people out of poverty.

Many countries had hoped the so-called G4 talks in Germany would lead to a successful Doha outcome. But they broke down over how much major developing nations should open up to farm and manufactured imports, and how much support Europe and the United States continue to give their farmers.