INTERVIEW-EU trade boss sees chance of Doha deal next year

Published 12/15/2010, 01:35 PM
Updated 12/15/2010, 01:40 PM

* Doha deal possible if politicians show enough will - EU

* Deal could be signed in first half of 2011 - EU

* Talks on Doha round have been stalled for two years

By David Ljunggren

OTTAWA, Dec 15 (Reuters) - The European Union's top trade official said on Wednesday there was a real chance that a global trade deal could be reached next year, but only if politicians showed enough will to push it through.

The head of the World Trade Organization is trying hard to revive long-running talks on the so-called Doha Round of trade talks, which collapsed in 2008. Leaders of the G20 and APEC economic groups want the round finished next year.

"The window of opportunity is limited and is probably (restricted) to the first half of next year. The idea that we could start from scratch and have an additional two, three or four years is not realistic," European Union Trade Commissioner Karel De Gucht told Reuters in an interview.

"I think that for the first time since 2008, when the negotiations collapsed in Geneva, there is a serious chance that we can come to an agreement. Whether it will materialize entirely depends upon the politicians," De Gucht said.

The Doha round -- beset by a series of delays -- was launched nine years ago to free up global commerce and help poor countries prosper through increased trade.

The talks have been stuck for two years on a U.S. demand that that major developing countries such as China, India and Brazil do more to open their markets. Emerging countries say they have already done enough.

De Gucht noted that some developing countries had made significant economic advances since the Doha round started in 2001 and were now serious competitors.

"That balance will have to be adapted compared to what the original mindset in 2001 was and that's about political will," he said after meeting Canadian Trade Minister Peter Van Loan.

Speaking in a separate interview with Reuters, Van Loan said he had some sympathy for the U.S. position that the Doha Round needed to be reworked to take into account the newfound power of China and others.

"China was a far less significant economic power. India and Brazil were far less economically advanced ... As that economic balance has shifted there is more argument that there has to be more in the agreement for countries like the United States, like Canada," he said.

Van Loan added that Canada felt there was "some possibility" a Doha deal could be struck next year. He spoke after meeting De Gucht to discuss talks on a free trade deal between Canada and the European Union. (With additional reporting by Louise Egan in Ottawa)

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