US optimistic on new trade talks

Mr Zoellick signed a $540m free-trade deal with India

US trade representative Robert Zoellick, at the end of a three-day visit to India, underlined his optimism for a new round of global trade talks.

In an interview with the BBC's World Business Report, Mr Zoellick said that recent meetings with ministers in Shanghai and Lima, as well as conversations with other developing-country leaders, had made a global trade agreement more likely.

"We've increased the momentum... I feel that there's an increased sense of interest," he said.

Mr Zoellick's trip helped lay the ground for a conference of the 142-member World Trade Organisation (WTO) in Doha, Qatar, in November.

Many poor countries are reluctant to embark on new talks, arguing that they lost more than they gained from the previous 1986-94 Uruguay Round of market-opening measures.

Strong opposition

India, a key influence on determining the stance of developing nations at Doha, has said there should be no new round unless the implementation of measures agreed in the Uruguay Round is sorted out.

Mr Zoellick acknowledged that further market-opening was sensitive for India's fractious 23-party coalition government despite its commitment to a "second generation" of the reform process begun a decade ago.

Opposition to US and international financial powers is strong in South Asia.

While Mr Zoellick was in Delhi, trade union leaders from five South Asian countries started meeting to devise a common strategy against privatisation programmes and restructuring of the labour sector.

Listening to concerns

But Mr Zoellick said that his visit brought great progress in persuading India to join in the new round.

"One of the reasons I came was to listen to their concerns," he said.

"It's countries like India, which have launched a reform process... that stand to gain the most."

As part of his trip, the US granted preferential trade access to the American market for Indian exporters, on goods worth an annual $540m.

About half of India's trade with the US is already duty-free.

On to Indonesia

After leaving India, Mr Zoellick is heading to Indonesia for his first meeting with the new government in Jakarta.

The Indonesian economy is mired in gloom, after a period of considerable political turmoil.

But Mr Zoellick said that - from an economic point of view at least - the prospects for the new government of Megawati Sukarnoputri were good.

"If you look at the exchange rate, they are in a very competitive position," he said.

From Jakarta, Mr Zoellick returns to the US for meetings with farmers' leaders at an Iowa agricultural fair.

"That demonstrates the new world of trade," Mr Zoellick said.

"I need to make sure I spend time at home, to talk to American farmers and American Congresspeople and have their support for trade."