The US faces a critical task of keeping multilateral trade negotiations alive after being blamed for torpedoing crucial talks aimed at forging an accord to liberalize global commerce.
Washington's refusal to compromise on an offer to lift trade barriers was a key reason for the collapse of a ministerial meeting in Geneva last week aimed at kickstarting the Doha Round of trade negotiations.
"I will not beat about the bush," WTO chief Pascal Lamy told delegates on Saturday as he officially announced the demise of the Geneva talks. "We are now in a crisis."
His no-holds-barred remarks mirrored concerns over the credibility of the 149-member global trade body, which was established with the US as a primary sponsor.
The failure of the week-long Geneva talks aimed at devising a formula to tear down trade barriers for agricultural and manufactured products was attributed mainly to US intransigence.
The US found itself isolated at the talks, which marked another failed attempt to meet multiple deadlines to conclude the Doha Round launched in the Qatari capital in 2001 with the goal of slashing trade barriers and helping developing economies accelerate economic growth.
No one came to Washington's defense as it came under blistering attacks from the EU and many developing countries over its refusal to review last October's offer to reduce farm subsidies, the meeting's key focus.
Facing pressure from a sceptical Congress and farm lobbies, US negotiators said they could not make any counter proposal because offers made by the others, including the EU, Brazil, Japan and India, did not meet US market access standards.
The offers Washington received smacked of an "unambitious formula with ambitious flexibilities" filled with "loopholes" and "half hearted" cuts, officials said.
"Until we improve these flaws we will not fulfill our promise in Doha and our responsibility to create a more market-oriented environment for the world's farmers and ranchers, manufacturers, workers, service providers, and obviously consumers," US Trade Representative Susan Schwab said.
"We came here as a leader in the system ... by putting on the table a major agricultural offer expecting that it would be matched by similar bold moves by others," she said. "Regrettably, that hasn't happened."
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