G-20 Seeks Doha Trade Round Breakthrough by Year End

By Fabio Alves and Brian Parkin

Nov. 15 (Bloomberg) -- The Group of 20 said they will seek a deal by the end of the year on concluding the seven-year Doha round of global trade talks.

``We shall strive to reach agreement this year on modalities that leads to a successful conclusion'' of the trade round, the G-20 leaders said in a statement released after talks in Washington.

World Trade Organization negotiators have been trying to reach an agreement since 2001 to cut agriculture subsidies and tariffs on industrial goods. Nine days of talks ended on July 29 after India and the U.S. disagreed over how poor nations could increase duties to protect their economies from surging farm imports.

Indian Prime Minister Manmohan Singh said today in Washington that his government is ``willing to work constructively with other major players to reach a balanced and mutually beneficial outcome.''

Leaders including Brazilian President Luiz Inacio Lula da Silva and German Chancellor Angela Merkel said an agreement could counter the current global slowdown and strengthen future economic growth.

``The best solution to keep the financial crisis from spilling over to the real economy is to complete the Doha Round,'' Lula said in Washington.

Merkel said an accord ``would be a signal that would be of equal weight as an economic stimulus program'' and said there were ``just a small number'' of obstacles to a pact.

Protectionism

The G-20 officials said rejecting protectionism was of ``critical importance'' and pledged not to raise trade barriers for the next 12 months.

``One of the dangers during a crisis such as this is that people will start implementing protectionist policies,'' U.S. President George W. Bush told reporters today. ``I'm pleased that the leaders reaffirmed the principles behind open markets and free trade.''

The Paris-based Organization for Economic Cooperation and Development this week predicted global trade growth would slow next year to 1.8 percent from 4.7 percent this year. Singh said industrial countries could help revive trade in developing countries by expanding export credit finance at a time when risk is limiting its availability.

``There is a need to intervene to overcome this market failure,'' Singh said. ``A collapse in trade is the last thing that one wants in the current crisis, with all its implications for growth and employment.''

To contact the reporter on this story: Fabio Alves in Washington at Falves3@bloomberg.net