Cancun, Sept 13: The logjam in world trade talks started to break on Friday, as rich and poor countries showed a bit more give-and-take over the reduction of subsidies paid to rich-country farmers. Ministers face a weekend of marathon negotiations if they are to find enough common ground to revive hopes of concluding a new global trade pact by their self-imposed deadline of the end of 2004. The Cancun talks are due to end on Sunday.

"There's a lot of activity and some indications of movement. I remain cautiously optimistic that we can get a really worthwhile agreement and progress here in Cancun," said Britain's trade secretary, Patricia Hewitt.
The World Bank estimates a deal to lower global trade barriers could add more than $500 billion a year to global incomes by 2015, lifting 144 million people out of poverty.

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The 4,700 delegates to the World Trade Organization talks realize that, with U.S. elections in 2004 and the European Union preoccupied with the entry of 10 new members, failure now could scuttle chances of a deal for several years.
"I hope that Cancun turns out as an important turning point because this is an opportunity for developing countries to leave the imprint of their stance on the WTO," said Arun Jaitley, India's commerce minister. "If they miss this opportunity, the next will not come for decades." A senior US official said talks with an assertive new alliance of 21 developing countries, led by heavyweights India, China, Brazil and South Africa, had been positive.
He said Singaporean trade minister George Yeo, who is trying to reconcile the many differing positions within the 146-member WTO, still faced a very tough task. But the official added: "Overall, we're still optimistic that this will all come together."

Thomas Aquino, the Philippine undersecretary for trade, struck a similar note: "Something will come out of this."

Bureau Report