WTO deal could be spur to growth amid financial turmoil

GENEVA - A global trade accord could provide much-needed stimulus to economic growth at a time of financial turmoil, the head of the World Trade Organization said Monday at the start of crunch talks.
With elevated food and energy prices coupled by uncertainty in financial markets, there is no better time than now to conclude the Doha Round, said Pascal Lamy, Director-General of the WTO.
“There is widespread recognition that a balanced outcome of the Doha Round could in these circumstances provide a strong push to stimulate economic growth,â€� he told ministers and trade officials at talks here that could determine whether an international trade-opening deal will be forged. The current economic situation â€" rising food and energy prices juxtaposed against financial market turbulence â€" were key drivers for a conclusion of the round, he said.
“I can think of no stronger spur for our action than the threats which are facing the world economy across several fronts, including rises in food prices and energy prices and financial market turbulences,� he said.
The point was also raised by United States Trade Representative Susan Schwab, who told reporters a successful outcome could “make a positive ... psychological contribution in the mid-term and long term in economic development.�
The Doha round of negotiations, officially known as the Doha Development Agenda, was launched with high hopes in the Qatari capital in November 2001.
It has been deadlocked as developed and developing countries show brinkmanship over concessions on issues such as agricultural subsidies and tariffs on industrial goods. But ministers from 35 key countries are in Geneva for meetings this week in a bid to nail down a deal.
Meanwhile, the European Union is ready to extend proposed cuts in its tariffs on farm produce to 60 percent from 54 percent at WTO trade talks, the bloc’s trade spokesman Peter Power said on Monday.
“We’re in a position to raise our average tariff cuts from 54 percent to 60 percent. This is a very considerable advance and it is a very substantial improvement and should inject important momentum into discussions in Geneva this week,� said Power.
The EU’s chief trade negotiator Peter Mandelson had earlier described the 54 percent cut offer as “painful� but a step Brussels was prepared to make to ensure a global trade deal.