January 14, 2007	Sunday	Zilhaj 23, 1427

CEBU (Philippines), Jan 13: Southeast Asian leaders called on Saturday on the world’s major powers to break the deadlock in global trade talks and move towards an early conclusion of the so-called Doha round.

In a statement the leaders of the 10-member Association of Southeast Asian Nations (Asean) said World Trade Organisation (WTO) members -- especially the major players -- must show flexibility and display resolve to end the round in a timely manner.

A successful outcome, they said, would spur economic growth and reduce global poverty.

The statement said an early breakthrough in what it described as “critical negotiating areas” such as agriculture was needed before the talks could be put back on track.

The WTO suspended the Doha Round last July after negotiators from six major parties, including the US, European Union, Brazil and India, failed to reach agreement after five years of talks.

The round, launched in the Qatari capital in November 2001, is at an impasse, with Western and developing countries split on issues such as agricultural subsidies and market access.

“The major players in the Round -- both developed and developing -- must show the requisite leadership and political will to create the basis for the successful conclusion of the Round,” said the statement at the end of Asean's annual summit.

Debt swap: Meanwhile, the Asean leaders also called on international lenders to consider swapping debt for equity in projects to enable poor countries to reduce poverty.

The proposal, first put forward by the Philippines more than a year ago, would allow poor countries to swap up to 50 per cent of their debt service payments with creditors.

In turn the creditors would be given equity in projects such as reforestation, pollution control, mass housing and health care, allowing poor countries to reduce poverty and help them meet UN development targets.

“We agreed that debt repudiation, debt-forgiveness or even discounts on existing levels of obligations are not the appropriate measures to apply,” the Asean leaders said.

The proposal is aimed at 102 of the world’s poorest and most heavily indebted countries, they said in a statement.

ASEAN groups Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.

—AFP