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G7 says Hong Kong meeting a `critical step'

Key world trade talks in nine days' time represent a "critical step" to lifting global economic growth and reducing poverty, the Group of Seven (G7) said after its weekend finance meet in London.

Finance ministers and central bankers from the world's seven richest nations said in a communique that "significant progress" on global trade liberalization must be made at the WTO's ministerial meeting in Hong Kong.

Negotiations have until now floundered, with developing countries arguing that unfair government support to European and US far-mers artificially depresses prices, effectively forcing their produce out of export markets.

"An ambitious outcome from the Doha Development Round by the end of 2006 is essential to enhancing global growth and reducing poverty," the G7 said, whose meeting was attended also by finance ministers from developing countries.

"The Hong Kong ministerial meeting ... will be a critical step," the statement said.

The Doha Round of trade talks, launched in Qatar in 2001, is in deadlock largely because of problems in farm trade talks among the WTO's 148 members.

Officials from developing countries said over the weekend that they are willing to take action allowing rich nations greater access to their industrial goods and service sectors, ahead of the latest round of talks in Hong Kong between Dec. 13 and Dec. 18.

However, this would be in return for the US and Europe conceding ground over the crucial issues of agricultural subsidies and tariffs.

Progress in Hong Kong could lift global income by US$300 billion over the next 10 years, according to British finance minister Gordon Brown, whose country holds the rotating presidency of the G7 and G8 this year, as well as of the EU.

Brazil said it was ready to move on industrial tariffs, provided that the US and the EU concede ground on agricultural subsidies.

India had told the G7 that it would make proposals over services negotiations.
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