`WTO weaknesses' key to talks failure

The failure of last week's ministerial talks on world trade hinged on weaknesses in the World Trade Organisation system, a failure to reassure developing countries that their interests would be regarded as central, and the timing of the Seattle conference at the start of the US presidential elections, according to Mr Pascal Lamy, EU Commissioner for Trade.

However, Mr Lamy insisted at a briefing in Brussels that there was no alternative to trying again. The need for a world system of rules to govern trade was agreed by all, he said, but the WTO's capacity to initiate a new round had been shown to be flawed twice, once in Geneva and again in Seattle.

Because of the structural problems associated with the round and the US presidential election, a restart would take some time.

He insisted the failure of the discussions was not attributable to the breadth of the agenda promoted by the EU or to "new issues" such as environmental or core labour standards, but that they collapsed on "the classic old trade issues".

He pledged to work with the WTO secretary general, Mr Mike Moore, to reform the system, saying the EU's experience as an international organisation was particularly relevant.

Mr Lamy said the challenge involved greater efficiency in the methodology of discussions and transparency and he backed MEPs' suggestions for a parliamentary dimension to the WTO.

A more extensive EU dialogue with the developing countries, and new relationships with the international financial institutions, were needed to reassure them that the link between development and liberalisation could be positive. "How we operationalise that with new policies and mechanisms is the challenge," he said.

Issues of world governance were raised by the Seattle failure, he said, acknowledging that some saw the way forward through the better linking of existing specialist international institutions, while others were beginning to make the case for an economic security council.

It was clear, he said, that these issues would have to be "addressed after this failure sooner than they would otherwise".