WTO chief upbeat on trade talks

Negotiators may be edging closer to a deal on the most divisive issues in the Doha round of world trade talks, the World Trade…

Negotiators may be edging closer to a deal on the most divisive issues in the Doha round of world trade talks, the World Trade Organization director said this weekend as the talks enter a critical stage.

"There is a strong sense that it's make-or-break moment. It may take a few weeks, but my sense is that there is a lot of focus and energy," WTO Director-General Pascal Lamy told CNBC in a taped interview.

Mr Lamy, speaking as Asian-Pacific leaders gathered in Sydney, Australia, for a summit, appeared encouraged by the round's recent turn as negotiators buckle down in Geneva for the latest set of talks on agriculture and industrial trade.

Mr Lamy gave "a cautious yes" when asked if negotiators were finally approaching the consensus on the round's thorniest issues - reducing agricultural subsidies in the United States, Europe and Japan, and scaling back industrial tariffs in emerging markets like China, India, Brazil, and South Africa.

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US Trade Representative Susan Schwab, who is also attending the Asia-Pacific Economic Cooperation summit, said in a separate interview with CNBC that she likewise sees a sense of urgency and motivation among negotiators.

"We're all reluctant to pick artificial deadlines, but I think there's a real recognition ... that we need to pick up the pace and really get to closure in the near future, otherwise this is going to meander and linger and go into hibernation," Ms Schwab said.

Yesterday, US President George W. Bush said he would show flexibility to help bring the round to close.

But both Ms Schwab and Mr Bush have singled out several countries they see reacting coolly to recent draft proposals.

"Countries that would trash the text or want to change the ranges in the text, that's basically a euphemism or formula for failure," Ms Schwab said. The round still has a chance to succeed, but will require "tough choices" from both developed and advanced developing countries, she said.

Many analysts are skeptical countries can overcome their deep differences, and predict the round will slip into hiatus for years. But it's probably impossible for countries to put the talks aside and begin again in a few years, Mr Lamy said.