Back to Doha

"They expressed a strong wish for a quick resumption of full scale activity in Geneva," the ministry, which hosted the gathering with World Trade Organization chief Pascal Lamy, said in a statement.

"The clear signal for the resumption of full scale negotiations in Geneva got strong support from political leaders and the business community gathered in Davos," the statement added.

The meeting of the select group of WTO members on the sidelines of the World Economic Forum was aimed at finding a way forward for the five-year-old talks which broke down in acrimony last July.

"We must tell the world that the Doha round is not dead," EU Trade Commissioner Peter Mandelson told journalists.

Director General Lamy suspended the negotiations at WTO headquarters in Geneva in the summer because of the persistent deadlock between the European Union, the United States and developing countries over trade tariffs.

Decisions in the WTO must be taken with the approval of all 150 members.

American offer needed to avoid repeat collapse

Lamy said he did not expect the negotiations to take the same course that led to their breakdown in 2006 and highlighted "clear" signs of commitment.

"We'll need a new American offer on agricultural subsidies, a new one from the EU in agricultural tariffs and new Indo-Brazilian offer on industrial goods and services," the WTO chief said after the meeting.

Mandelson called on all those involved to show flexibility in the coming months and raised the prospect of a "no loopholes" concession to cut EU import tariffs for farm produce.

Lamy signaled that an offer from the United States was on the horizon.

In recent days, key countries including India and the United States had played down hopes of an immediate breakthrough, although they hinted at some progress in informal bilateral meetings in recent weeks.

Brazilian President Luiz Inacio Lula da Silva, an influential member of the G20 group of developing countries in the WTO, said during an appearance at the Forum that Brazil was willing to make concessions.

However, he was only ready to persuade the G20 to accept a deal if the EU and United States bridged their gap over farm subsidies and tariffs first.

EU singing from different song sheets on agriculture

In the European Union, the French government in particular has insisted that the EU should not make any new offer to reduce import tariffs on farm products, a key bone of contention with the United States and developing nations.

Mandelson said Saturday that the EU was ready to improve its offer on agriculture "in the right circumstances", to move closer to the demands of the G20. He suggested others needed to offer concessions on industrial goods and services.

"Every key player will need to show new commitments and new flexibilities including on NAMA (Non Agricultural Market Access) and services," he added.

The EU has been asking emerging economies in particular for better offers in those areas in return for freer access to the Union's huge consumer market for their imported farm produce.

"We are ready to do this in a way that demonstrably gives new market access to all exporters and all products. No loopholes," said Mandelson.

Doha talks needed to avoid economic crisis

The round of negotiations launched by the WTO members in the Qatari capital Doha in 2001 aims to reduce down trade barriers for the benefit of poor countries.

It has been riven with cross-cutting disagreements about the extent of cuts in farm subsidies and import tariffs, largely holding up faltering attempts to break down barriers to industrial and services trade.

European Central Bank chief Jean Claude Trichet said here Saturday that any failure to complete the Doha round would jeopardize the world economy.