WTO scrutinises US trade policy

The WTO said the US should reduce its support of agriculture

The US should lower trade barriers and grow exports to boost its economy in the face of economic uncertainty, the World Trade Organization (WTO) said.

The WTO said the US, while a strong supporter of the global trading system, had not fulfilled all its commitments.

In a trade policy review seen by Reuters news agency, the WTO said the US should reduce government support for the agriculture and energy sectors.

Boosting exports would help cut the massive US current account deficit.

"In the face of the economic uncertainty prevalent in early 2008, US welfare would be best promoted by...continuing to reduce barriers to market access and other distorting measures," Reuters reported the WTO document as saying.

Papers due

Negotiating papers in the Doha Round, which chart the direction of global trade talks, are due to be published next week.

EU Trade Commissioner Peter Mandelson has urged a quick draft agreement before US presidential elections in November.

Trade and its impact on blue-collar jobs have been big issues in the election campaign and the Democratic candidates, if elected, are likely to take a tougher stance than the current administration.

Developed nations, including the European Union and the US, are at odds with developing countries over access to each others' markets.

The US and the EU want poorer countries to open their markets further to its goods and services while developing countries want greater access for their agricultural products in Europe and the US.

Meanwhile, Ukraine officially became the newest member of the WTO on Friday after 14 years of negotiations, getting in ahead of bigger neighbour Russia.