NZ businesses urge compromise on Doha round

New Zealand business groups are lobbying the World Trade Organisation (WTO) to liberalise trade in agriculture.

With the Doha round of WTO talks looking shaky, New Zealand Chambers of Commerce and Industry have warned in a letter to WTO director-general Pascal Lamy that the failure of the negotiations would be disastrous.

Director Charles Finney says in the letter that it is the chambers' view that for the European Union, United States and Japan to agree to liberalise trade in "difficult areas" such as agriculture, there would need to be some progress in areas where they sought changes, such as trade in services.

"Not only do services negotiations have the potential to break the current impasse, they are crucial in their own right," Mr Finney said.

The group believed there was still a chance of achieving an end to the Doha Round of negotiations this year.

"Failure or delay would be potentially disastrous for the WTO, the international trading system and the global economy," Mr Finney said.

Mr Lamy is consulting with member countries to facilitate an agreement on agricultural and non-market access.

- NZPA