India, Pakistan press for textile pacts with US, EU

Developing countries angrily accused rich states on Wednesday of reneging on commitments on textile exports, warning them that they risked damaging crucial negotiations to free up world trade.

Countries such as India and Pakistan, for whom clothes and textiles are major foreign currency earners, have been pressing the EU and the US to speed up plans to lower import barriers.

But a Wednesday deadline for an accord at the 144-state WTO passed without any sign the sides could narrow their differences.

Malaysia, which chaired a committee seeking to find a compromise, reported back to WTO's decision-making General Council that no deal had been possible, the officials said.

The WTO agreed last November in Doha, Qatar, to launch a new round of trade talks to give a multi-billion dollar boost to the world economy. The new round was named the Doha Development Agenda to underline that all WTO states should benefi.

Developing countries, many of which felt they had gained little so far from freer trade and only reluctantly accepted the Doha deal, demand progress in areas such as textiles as proof that the rich states are sincere about development.

"The Doha work programme constitutes an overall package, with an emphasis on development. The message that is coming out is that the development message is being jettisoned," India's representative told the General Council.

"If the development aspects are sidelined ... it will inevitably have an impact on other aspects. Any attempt to drive the work programme forward at two speeds would lead to an unravelling of the package," he added.