[Free Trade] WTO chief Lamy warns against missing April deadline

from Reuters India

By Richard Waddington

GENEVA (Reuters) - World Trade Organisation (WTO) chief Pascal Lamy warned member states on Tuesday it would be a huge mistake to miss an April deadline for accords vital to an eventual global trade treaty.

Although the 149-nation trade body has sometimes ducked major decisions rather than risk failure, Lamy said the end-April target for a sweeping pact on agricultural and industrial subsidies0 and tariffs must be hit.

"I believe we would be making a huge collective mistake if we thought we could postpone (a deal) by the end of April," he told the Trade Negotiating Committee, the steering body for the WTO's Doha round of free trade negotiations.

The difficulties of striking a deal have led to speculation in Geneva that the WTO could let the April date slip.

Lamy will be attending a two-day meeting this weekend in Rio de Janeiro with United States Trade Representative Rob Portman, European Union trade chief Peter Mandelson and Brazilian Foreign Minister Celso Amorim, where a further attempt will be made to narrow differences.

He told journalists: "It will not be a meeting for taking decisions, but for exploring the possible shape of the 'landing zone'," his term for the outlines of a deal.

The French former EU trade commissioner said agreement on cuts to rich-nation farm subsidies and lower tariffs on farm and manufacturing goods was a key to unlocking other areas of the round, which aims to boost the global economy and lift millions out of poverty.

Failure to secure an accord by the end of next month would make it very difficult for the WTO to reach its goal of an overall free trade deal before the expiry of U.S. presidential powers to negotiate trade deals in mid-2007.

"(It) is in my view a recipe for failure," Lamy said.

While stressing the end-April date was "do-able", he warned leading WTO members against waiting until the last moment before announcing they were ready for a deal.

"We need significant progress among key players on key issues, but it will not be enough for a small number of members suddenly to arrive with a piece of paper in their hands on April 30," he said.

Lamy said the EU had to make further concessions on opening up its highly protected farm market to imports, the United States had to agree to more farm subsidy cuts and Brazil would have to accept deeper cuts in industrial tariffs.

"The question is not whether, but when," he said.