Global trade pact could help economy

India said Wednesday the crisis-hit global economy has much to gain from a new trade liberalisation pact as it confirmed it would host a September meeting of world trade ministers. The meeting of G20 ministers from rich and emerging market nations aims to capitalise on a fresh momentum in global commerce discussions and is planned for September 3-4 in the Indian capital, a government official said.

The New Delhi meeting is being held to "impart the necessary impetus" to the World Trade Organisation negotiations, Trade Minister Anand Sharma told a business forum.

"A fair and satisfactory outcome to the trade negotiations can actually be a catalyst for the combined international effort to break free of the economic crisis" by promoting trade, he said. "India stands committed to bringing Doha to a successful and early conclusion and is keen to resume negotiations," he added.

But at the same time, he insisted there could be no compromise on the round's key development thrust, saying India wants to "ensure historic distortions are corrected" to improve the livelihoods of millions of poor.

India has been unbending in its championing of the cause of small and marginal farmers, saying it will not sacrifice the interests of its millions of subsistence producers to clinch a global trade pact.

The Doha Round of trade liberalisation talks were launched in the Qatari capital in late 2001 but has been repeatedly stalled by disputes between rich and developing nations on agricultural and industrial products.

Negotiators almost clinched a deal last year but the talks fell apart in a row between the United States and emerging nations led by India over efforts to assist poor farmers.

But with newly elected Governments in both countries, efforts are underway to put talks back on track.

Earlier this month, leaders of the world's most powerful nations and emerging economies agreed to wrap up the Doha talks by 2010 at a Group of Eight (G8) summit in L'Aquila, Italy.

The meeting in India is being held as a precursor for a G20 summit to be held in Pittsburgh in the United States on September 24-25.

India initially announced in June plans to host the WTO meeting but gave no precise dates.

Sharma, who replaced Kamal Nath as minister following the May re-election of India's Congress party, said after his appointment he had a mandate to negotiate a global trade deal.

But Sharma, regarded by some observers in WTO circles as being more conciliatory than his predecessor, said the global slump could make it harder to reach a deal. "There will be pressures on Governments to turn inwards. But yielding to such pressures can only lead us into a self-defeating spiral of protectionism," he said.

He opposed setting any deadline for wrapping up the Doha Round, saying "substance and not timelines should be the main driver" of talks. AFP