September 13, 2003	Saturday	Rajab 15, 1424

CANCUN, Sept 12: Ministers from 146 countries braced for more tough talking on Friday in a bid to reach the consensus they need to rescue a proposed trade pact that so far has eluded them at their Mexican seaside conference.

With two days to go before the conclusion of the Cancun gathering, the smallest sign of optimism remained couched in cautious terms, underlining the depth of the divisions plaguing the World Trade Organization.

And members have warned that failure of the talks would have a disastrous impact on the world economy.

Delegates have stressed the need for concessions if some form of consensus is to be reached, particularly on agriculture, the key issue at the conference.

On Thursday, the United States reportedly warned two blocs of agricultural exporters that unless they eased their demands for the abolition of farm subsidies the Cancun meeting could collapse.

But Singapore’s Minister for Trade and Industry, George Yeo, who has been tasked with trying to close gaps, made it clear that no major shifts of positions had been seen on farm reform on Thursday. Although Mr Yeo said he had seen some indications of flexibility, he also reported that “delegations are still playing their poker cards close to their vests.”

“He said he hopes to see members bridging their gaps tomorrow,” WTO spokesman Keith Rockwell said.

Mr Yeo hopes to release a fresh draft text late on Friday to try to bridge the gaps, although he has acknowledged it will not represent a consensus text, Mr Rockwell added.

Late talks between a group of 21 developing countries, led by Brazil, with the United States and the European Union made it clear negotiators still faced an uphill battle.

“It is not yet what we want to hear, but there is a dialogue going on,” Brazil’s Agriculture Minister Roberto Rodrigues said after the G-21 talks with the United States.

Guatemala’s Foreign Minister Patricia Ramirez was even more grim after the talks with the EU delegation. “Their proposal is radical, it maintains domestic aid, it maintains subsidies,” she said, adding that the EU’s position was “tougher” than that of the United States.

Agriculture is the most divisive issue, with the United States, the European Union, the Cairns Group of leading farm producers, the G-21 and Japan all having a major stake at play. Members also clashed over whether to launch talks on new WTO rules on cross-border investment and the three other so-called Singapore issues.

And WTO director-general Supachai Panitchpakdi led efforts to tackle demands by West and Central African cotton producing countries for an end to subsidies paid by rich countries to their rivals.—AFP