The Hindu Business Line : World Bank chief appeals for agreement in Doha trade talks

The World Bank President, Mr Paul Wolfowitz, has urged the G-8 (group of industrial countries) plus Brazil, China, India, Mexico and South Africa to reach an agreement in the Doha trade talks when they meet in St. Petersburg, Moscow on July 17.

In a letter to each of the leaders of the 13 countries, including the five which might attend the planned outreach session along with the African union and international organisations at the G8 summit of major powers, Mr Wolfowitz said the forthcoming event offers "a unique opportunity we must take advantage of if we are to make urgently needed progress in the Doha trade talks".

Stating that with time running out "our collective efforts can make the difference", the World Bank Chief said, "we can work to lift millions from poverty, boost developing country income, improve global market access and reduce taxpayer and consumer costs for all or allow the whole effort to collapse, with harm to everyone."

He said while successfully concluding the Doha round would depend on detailed formulas and a painstaking technical process, there is the opportunity for the leaders gathered in St. Petersburg to provide the momentum essential to success.

Next week, he said, a pledge by the US to reduce agriculture subsidies, by the European Union to improve market access and the +5 members to limit tariffs on manufacture, a pledge that meet's WTO Chief Negotiator, Mr Pascal Lamy's targets, could help seal a deal.

Mr Wofowitz said the world's poorest people, the 1.2 billion living on less than a dollar a day, are counting on "your good intentions being transformed into decisive action, just as last year when your resolute political leadership launched the historic multilateral debt relief initiative".

He said a pro-development result would yield gains for the rich and the poor alike. He said that would be an important step on the path to full liberalisation, which could eventually generate $300 billion a year in additional production for the world economy.

Developing countries could alone gain by as much as $86 billion, dwarfing annual bilateral assistance efforts, he added.