Moore upbeat on global round of trade talks

DAVOS - World Trade Organisation chief Mike Moore is optimistic that a new round of global trade talks could be launched at the WTO's next ministerial meeting, in Qatar in November.

The trade chiefs of the European Union and South Africa also favour new trade negotiations this year - two years after the Seattle WTO conference failed to do so.

"I think with focus and flexibility it can be," Mr Moore said at the World Economic Forum in Davos at the weekend.

In Seattle, the EU and the United States fell out over agricultural trade. Developing countries strongly resisted calls by the EU and America to bring minimum labour standards onto the WTO agenda.

Mr Moore, who met Trade and Finance Ministers from 20 countries in Davos to discuss prospects for a round, said he detected a change in attitudes.

"We have moved from discussing demands, to constructive suggestions of how we can get this thing going," he said.

He also said that there would be "no labour sanctions in the WTO."

One of the fears of developing countries is that rich countries could try to impose sanctions on countries that fall below specified labour standards.

But Mr Moore said he had not yet discussed a round with George W. Bush's Administration.

The attitude of the new US Administration towards launching a new trade round is crucial.

European Union Trade Commissioner Pascal Lamy told the forum that the "future of the WTO-based multilateral trading system will probably be decided this year."

He said he saw only one answer to several trends appearing, including a slowing in the world economy.

"The answer is for this year and the answer is a round."

The commissioner said the 15-nation EU was reviewing its negotiating position to try to convince countries which were not keen on a new round.

He hoped this would be completed by the end of next month.

- REUTERS