Bilateral trade talks a distraction, warns WTO

The World Trade Organisation (WTO) has warned that a growing number of bilateral and regional trade talks risk distracting from attempts to clinch a long-elusive global deal.

WTO head Pascal Lamy says smaller countries cannot focus on both the global approach to trade, such as the WTO's Doha round, and a new focus by powers such as the EU and the US on bilateral trade deals.

Australia has a free trade agreement with the US.

"Most of my members... cannot afford to ride both horses," Mr Lamy said in a discussion on international trade with Europe's trade chief, Peter Mandelson, and European businessmen.

"There is a resource diversion problem, given the limited number of competent trade negotiators on the surface of this planet."

Mr Lamy suspended the WTO's Doha round of trade negotiations in July, nearly five years after it was launched to reduce barriers to trade, because of stubborn differences between leading WTO members, mostly over agriculture.

Trade officials warn the suspension could last several years if there is no breakthrough early next year, a major setback to the multilateral approach that is widely considered the best way to boost global trade and economic growth.

Mr Mandelson and other trade negotiators say resuming the Doha talks is their priority.

The US has continued to work on bilateral deals with countries, many of them in Asia.

Mr Mandelson has said the EU will also focus on trade and investment agreements with India, South Korea and south-east Asian countries.

- REUTERS