IMF, World Bank urge courage to achieve Doha deal

from Yahoo News

GENEVA (Reuters) - The heads of the World Bank and International Monetary Fund (IMF) said on Tuesday a quick conclusion to the long-running Doha trade talks was essential to help poor countries grow out of poverty.

World Bank President Robert Zoellick said rich and poor countries had made considerable progress in negotiations since the start of the trade talks, which he helped launch six years ago in the Qatari capital as U.S. trade representative.

"You have the elements of an excellent deal on the table. With political will -- and a little courage -- you have a package here that would be a lasting improvement for the trading system," he told a WTO conference on aid for trade.

IMF Managing Director Dominique Strauss-Kahn said export-orientated policies were necessary for growth although a stable macro-economic framework, where the Fund could help developing countries, was also essential.

"The prompt conclusion of the Doha Round is one of the conditions that will make it possible for all of us to take advantage of the growth opportunities in front of us," he said.

The much-stalled Doha talks picked up momentum in September.

Trade diplomats and officials believe the chairmen of the agriculture and industrial talks will now not issue revised negotiating texts -- the foundations for any deal -- until early next year.

But the apparent lack of progress is belied by intense backroom talks on the key farming sector, with rich and poor countries asking for more time to crunch the numbers because a deal may be within grasp.

Zoellick said the agriculture reforms from a Doha deal, both in terms of cutting trade-distorting subsidies and opening up markets by cutting tariffs, could be historic.

"The cuts in barriers in goods will offer benefits throughout the global economy for years to come, in ways you can only partially perceive today," he said.

"Given the changing nature of global production and farming, developing countries could be major beneficiaries."

The conference is being organised by the WTO to help developing countries improve their trade capacity, prioritise projects that will help trade and ensure trade is embedded in their development strategies.

Zoellick said the World Bank was expanding its own work on trade to support this effort.

In trade finance the bank plans to nearly double its volumes under the programme helping small and medium-sized exporters in developing countries to $2 billion, from an expected $1.3 billion this year supporting about $1.9 billion in trade flows.

The number of banks in this programme will also double to 260, he said.