GENEVA, July 16 (Agencies): World Trade Organisation (WTO) head Pascal Lamy said yesterday that a global liberalisation deal could add between 50 and 100 billion dollars each year to the world economy.
Speaking ahead of last-gasp talks here next week on a trade accord, Lamy said a deal could produce savings of some "50 billion dollars per year of duties foregone with existing trade flows and double this number 10 years from now."
Some two thirds of these gains would benefit developed countries and one third go to developing countries, Lamy said as he presented the WTO's annual report on global trade.
The figures do not take into account other benefits that could accrue to the 152 WTO members if other measures were taken, he added.
Lamy said next week's meeting of the top WTO powers to thrash out a deal on trade in industrial and agricultural products was very important given the current uncertain economic outlook.
"An inability to come to a deal would be a dark signal," he said.
"With these dark clouds gathering on the economic horizon ... let me appeal to all interested parties ... to join in giving that vital push to propel the negotiations to a successful outcome," he added.
The Doha round of trade liberalisation negotiations, launched in the Qatari capital in 2001, has been bogged down as developed and developing countries alike refuse to make concessions on their core concerns.
Time is running out for a breakthrough in the negotiations, which were originally supposed to be completed in 2004, before the current US administration steps aside in January.
Meanwhile, India expects a WTO ministerial meeting in Geneva next week to make progress but has the option of walking out if it does not get what it wants, Trade Minister Kamal Nath said Wednesday.
Last week, WTO mediators presented revised proposals in the core areas of agricultural and industrial goods trade, which they said contained fewer options for ministers to consider after negotiations had narrowed gaps on technical issues.
"I am hopeful this meeting in WTO will lead to progress and closure, and I am optimistic," Nath told a news conference.
"Of course, we have a full option to walk out. There can be no agreement unless India agrees," he added.
Ministers from around 30 countries will meet to try for a long-awaited breakthrough on agriculture and manufactured goods in the Doha trade round.
The Doha negotiations have lurched from missed deadline to missed deadline over the past seven years, with rich and poor countries and exporters and importers bickering over how much markets should be opened up or protected.
Developing countries want rich nations to open up their markets for food, and reduce protection for their farmers by cutting tariffs and subsidies.
In return, rich countries are seeking a bigger share of the growing markets for industrial goods and services in emerging economies, through tariff cuts and liberalisation.
