Economic powers committed to trade pact

Six of the world's top economic powers made little headway yesterday in removing long-standing hurdles to a global trade deal…

Six of the world's top economic powers made little headway yesterday in removing long-standing hurdles to a global trade deal, but reaffirmed a commitment to conclude a key part of the pact by the end of April.

Brazilian Foreign Minister Celso Amorim said the "click" needed to achieve a breakthrough in World Trade Organisation (WTO) negotiations was still not there after two days of talks hosted by European Union trade chief Peter Mandelson.

Mr Mandelson struck a more upbeat note, saying that the six had made some progress, though he did not go into detail. "We have had a good meeting so far, testing both the possibilities and limitations of these negotiations," he told reporters.

The WTO's 149 member states are racing to meet the April deadline they set in Hong Kong last December for a draft accord in agriculture and industrial goods, two of the most contentious areas of the overall free trade negotiations.

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The WTO's Doha round, launched in 2001 with the aim of boosting the global economy and lifting millions out of poverty, must be wrapped up by early next year.

The EU, the United States, Brazil, India, Australia and Japan, which represent a broad swathe of trading interests, have been taking the lead in trying to bridge deep differences.

Both the United States and the European Union are under pressure to make more concessions in agriculture, where many poorer countries feel they have most to gain from freer trade.

Washington is being urged to go beyond its offer to slash farm subsidies by up to 60 percent, which critics say lowers budget ceilings but without cutting actual spending. The EU faces demands for deeper tariff cuts to open up its highly protected farm market.

In turn, rich nations are insisting that leading developing states such as Brazil and India do more to open their industrial and services markets to imports.

Brazil, backed by Britain, has called for a summit meeting  to take the tough decisions, particularly in agriculture which is politically highly sensitive.