PARIS, May 24: A signal from the EU that it would be prepared to improve its offer on farm products to unblock stalled WTO talks drew a cool response from Washington on Wednesday amid signs that global trade negotiations were set for further stalemate.

Trade negotiators from a number of leading countries met for WTO talks at the OECD annual conference here with a hint of a possible “enhanced” agriculture proposal by the EU the only sign of new momentum in the deadlocked negotiations.

Australian Trade Minister Mark Vaile had hailed the offer, contained in a speech by EU Trade Commissioner Peter Mandelson, as an attempt at leadership that put the onus on others to respond.

But incoming US Trade Representative Susan Schwab indicated the EU proposal was likely to be insufficient and Deputy US Trade Representative Peter Allgeier said “a minimal change” would not be enough to kick-start negotiations.

Meanwhile, Pakistan Commerce Minister Humayun Akhtar Khan while addressing the Trade Session of the Organisation for Economic Cooperation and Development in Paris emphasized the need to urgently make substantial progress towards successful conclusion of Doha Round in order to achieve the targets of Millennium Development Goals (MDGs).

The minister attended the session on special invitation of the prime minister of Greece and the Secretary General of OECD to present developing countries point of view at the OECD Ministerial Council Meeting.

The minister highlighted the key obstacles which were in the way of successful conclusion of Doha round and said, “If trade-distorting subsides are not removed, trade flow of goods and services is not facilitated and Rules are not made more transparent, an agreement will be difficult and such a result could not be called a development agenda. This puts a huge responsibility on countries with large subsidies,” according to a written speech released to the media in Islamabad on Wednesday.

Humayun also urged his colleagues in the developing countries to show more flexibility. He also warned the session of the consequences of failing to close the Doha round this year. “This would mean further marginalising many countries that depend upon multilateral trade. It would also severely undermine the credibility of the WTO”.

The newly appointed US Trade Representative, Ms. Susan Schwab met Mr Humayun on the sidelines of the OECD Ministerial meeting.

The commerce minister apprised Ms. Schwab of the progress achieved on the Intellectual Property Rights in Pakistan and hoped that the Bilateral Investment Treaty (BIT) would be finalised soon.

He requested the USTR to expedite the duty free access for Reconstruction Zones in Pakistan.

He reminded her of Pakistan’s long-standing request for early initiation of negotiations for Free Trade Agreement between USA and Pakistan.

The minister also had a detailed meeting with WTO director general Pascal Lamy.

Elsewhere, Egyptian Trade Minister Rachid Mohamed Rachid warned that the latest round of WTO talks, started in 2001, could collapse again if the needs of developing nations, particularly African nations, were not given due attention.

If the concerns of the US, EU and emerging giant Brazil continued to dominate debate “we are going to repeat something of what happened in Cancun,” he said.

Negotiations are currently deadlocked with the US under pressure to cut its subsidies to farmers, while the EU is being asked to make deeper cuts in the tariffs imposed on imported farm products.

Both the US and EU are demanding greater access to markets in developing countries for their industrial and service products.

On Tuesday, EU Trade Commissioner Peter Mandelson had suggested that he could improve the EU’s offer for trade in agricultural products, providing other partners also enhanced their proposals.—Agencies