Key mediators warned yesterday that failure to agree on a draft of a global trade treaty at next week's gathering of the World Trade Organisation could doom the talks indefinitely.
Mediators vowed to step up efforts to bridge differences ahead of the meeting of trade ministers in Geneva starting on July 27 that Trade Minister Mark Vaile is expected to attend. The gathering will aim to finish a framework for a legally binding treaty to cut import duties and regulate government subsidies, paving the way for a final deal perhaps next year.
"We must be able to reach an agreement this time," WTO director-general Supachai Panitchpakdi told reporters.
"Otherwise the implications ... would be something I would not like to think about."
A failure to agree on draft guidelines next week could delay the current round of talks indefinitely, Mr Supachai warned. Without agreement, the talks will remain paralysed for many months because of the US presidential elections and the changeover of power at the European Commission.
The main dispute centres on agriculture, where poor nations and agricultural exporters have demanded massive cuts in the billions rich nations pay in subsidies to their own farmers.
However, Australian farmers are concerned that the draft deal now under discussion also leaves room for nations to make smaller cuts in protection on products they consider "sensitive" - often products that are crucial to their domestic farming industries.
The WTO 's Mr Supachai and Japanese ambassador Notaro Oshima - who chairs the 147-nation WTO's ruling General Council - have been meeting delegations to promote their compromise text, which they put forward last Friday.
Mr Oshima said he remained hopeful that members could build on the text to reach an agreement.
The Group of 10 heavy farm importers - which includes Israel, Japan and Switzerland - has made the strongest objections.
The framework for a legally binding treaty was due to be completed at a meeting of ministers in Cancun, Mexico, last September but those talks collapsed.Dow Jones Newswires:
