Big boys revive trade deal hopes

Upcoming meetings between the main players in the World Trade Organization (WTO) negotiations have given hope for progress on a deal. Talks between trade ministers in Geneva ended last week without any new offers put forward and Pascal Lamy, the head of the WTO, is now consulting with the Group of Six - the US, EU, Japan, Brazil, Australia and India - to try to get agreement.

But a visit by US President George W. Bush to Germany on 12-14 July and a G8 summit in St Petersburg on 15-17 July could also provide a forum to get agreement. Some developing countries have been invited along so that negotiations can take place on the sidelines of the summit.

Problems in the Geneva talks arose when the US sought greater cuts in agricultural tariffs and the EU and developing countries responded by saying they wanted the US to go further. "We are now in a crisis. The only good news I have is that no one, and I repeat no one, appears to want to throw in the towel," Lamy said after the talks ended.

European Commission President José Manuel Barroso said it was still possible to reach agreement if all parties made the effort. "Unfortunately, we have not seen enough of that in this round in Geneva," he said.

A Commission official said that the EU was ready to move once the US showed a similar sentiment.

Oxfam fears reducing negotiations down to striking a deal among the Group of Six nations is bad for developing countries. "Putting four rich countries and two developing countries into a room and trying to cook a deal is slightly worrying," said Louis Belanger, Oxfam spokesman in Brussels.

Upcoming meetings between the main players in the World Trade Organization (WTO) negotiations have given hope for progress on a deal. Talks between trade ministers in Geneva ended last week without any new offers put forward and Pascal Lamy, the head of the WTO, is now consulting with the Group of Six - the US, EU, Japan, Brazil, Australia and India - to try to get agreement.