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Cairns Group says Doha trade talks "within our grasp"

Published 06/09/2009, 12:26 AM
Updated 06/09/2009, 12:32 AM

NUSA DUA, Indonesia, June 9 (Reuters) - Prospects for wrapping up troubled world trade talks have improved, after signs of a new commitment from key players such as the United States, a group of major agricultural exporting nations said on Tuesday,

Trade ministers came close in July 2008 to a deal on the Doha round of talks, but the talks collapsed over a dispute between Washington and emerging economies spearheaded by India over proposals to help farmers in poor nations.

The Cairns Group -- 19 nations accounting for more than 25 percent of the world's agricultural exports -- said in a communique at the end of a meeting in Bali that trade officials from the United States, Europe and India had shown fresh resolve to concluding the Doha talks launched in in 2001.

"These special guests have told us they share the commitment of the Cairns Group to reinvigorate the negotiations, with a view to bringing the Doha Round to conclusion in the shortest possible time," the communique said.

"Concluding the negotiations would deliver a much needed contribution to economic recovery and demonstrate the benefits of the multilateral trading system. This outcome is within our grasp, and we are determined to make it happen."

Political conditions for a world trade deal have shown signs of improving, although protectionist sentiment is rising as well because of the global crisis, including dairy export subsidies brought in by Europe and the United States this year.

U.S. Trade Representative Ron Kirk met India's new trade minister Anand Sharma on Monday, with Sharma describing the meeting as "very positive".

"Negotiators must reconvene in Geneva as soon as possible to map out a clear path towards the conclusion of negotiations and to start down that path before the European summer break," the communique said. "USTR's Kirk and Commerce Minister Sharma of India fully endorse these views."

The Doha deal is estimated to be worth $150 billion for the world economy and is considered even more important now that the world is facing its worst economic crisis in decades.

(Reporting by Sunanda Creagh and Gde Anugrah Arka; Editing by Ed Davies and Bill Tarrant)

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