Biz People: Lamy warns on Doha round

World Trade Organization chief Pascal Lamy (above right) said yesterday a breakthrough in troubled global free trade talks was still possible but he warned of growing risks of failure.

After nearly six years of negotiations to lift millions of people out of poverty and boost the global economy, chances of a deal before a summer deadline are fading, trade analysts warn.

Success or failure rests on the political will of big trading powers like Brazil, the United States and the European Union, said Lamy, formerly the EU's top negotiator in the Doha round of WTO talks.

"It is do-able, it's not yet done and we need political traction for a final breakthrough," Lamy told delegates at a Barcelona retail summit.

But he added: "Failure of the round is a scenario which we all need to have in mind. If we are really responsible, given the state of negotiations, we need to consider this scenario."

The White House loses fast-track trade negotiation powers in June that allow it to do deals without approval of Congress.

Many consider fast-track vital to the success of the Doha round and the the Democrat-controlled legislature may not renew the powers after they expire.

(China Daily 03/30/2007 page16)