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Published 25 Jul, 2008 12:00am

French threat deepens gloom at WTO

GENEVA, July 24: A threat by France to torpedo a new global free-trade pact deepened the gloom surrounding troubled WTO negotiations on Thursday, with scant progress having been made so far toward a deal.

Strains between big and small countries also emerged, adding to tension between rich and poor nations, as four days of gruelling talks produced little sign that an agreement was within reach.

Amid back-stabbing and evidence of frustration, French President Nicolas Sarkozy weighed in with a warning that Paris could sink the whole Geneva exercise.

“At the WTO, this agreement which is on the table, if it is not modified, then we will not sign it,” Sarkozy said from northwest France, referring to a draft agreement under discussion here.

The draft agreement is a mere starting point for talks, but Sarkozy’s comments reflect deep anxiety and opposition in Paris to concessions that would damage its farming sector.

The World Trade Organisation has convened a meeting here of 35 leading trade negotiators with the aim of mapping out a deal to conclude the long-delayed Doha Round of global trade talks.

The Doha Round began seven years ago with the aim of helping poor countries but has been delayed by disputes between the rich developed world and poorer developing nations over cutting subsidies and tariffs.

“On some of the key issues, positions still remain too far apart,” WTO Director-General Pascal Lamy conceded at a meeting of the organisation’s 153 members on Thursday, his spokesman told reporters. Any final deal, if approved by negotiators here, would then be proposed to all 153 WTO members which would have to ratify it individually.

After meetings of 35 invited delegations failed to deliver progress early in the week, Lamy has concentrated his efforts on trying to get a smaller group of seven leading trade powers to find common ground.

Only the United States, the European Union, Japan, India, Brazil, Australia and China were involved in talks until the early hours of Thursday morning, which drew complaints from smaller nations.

Eight delegations complained about the approach at a morning meeting, Rockwell said, with host nation Switzerland leading the criticism.—AFP

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