Trade deadline looks difficult, says Goff

An agreement on boosting global trade in farm and industrial goods by the April 30 deadline is looking difficult, says Trade Minister Phil Goff.

Trade ministers meet in the Swiss mountain resort of Davos today and tomorrow for the first time since a conference in Hong Kong last month at which they decided to put back the deadline for agreeing to a draft free-trade deal until the end of April.

But Goff - in Switzerland, where he met World Trade Organisation chief Pascal Lamy - said there was a narrow window of opportunity to finalise issues.

"Getting this done by April 30 will be tight, but the technical work can be done if there is the political will and direction from ministers for the work to be completed," he said.

The European Union has offered cuts of some 40 per cent in duties, while keeping barriers on a clutch of "sensitive" products, in addition to reductions being made in its farm spending - the Common Agricultural Policy.

The United States has responded to the CAP reform with proposed deep subsidy cuts of its own, but it says they are conditional on the EU doing more to open its markets.

Critics among farm goods exporters and developing countries, say neither offer goes far enough.

On Monday, European Trade Commissioner Peter Mandelson blamed countries such as Brazil and India for blocking a world trade deal, but he raised the prospect of new moves by Brussels.

- REUTERS