Fresh move on global trade deal

There is strong opposition in the US to subsidy cuts for farmers

The World Trade Organisation (WTO) has published new draft plans for a global trade deal to be discussed at the next meeting of trade ministers.

The text made no major changes to proposals on tariff and subsidy cuts made previously.

But offering compromises and clarity on key sticking points, the WTO is hopeful that it will bring the debate a step closer to resolution.

Negotiators are hoping to strike a deal by the end of the year.

"These revised negotiating texts illustrate clearly where convergence lies among the WTO members and where we have more work to do," said WTO director-general Pascal Lamy.

"We are getting closer to our end game," he added.

Lengthy negotiations

The WTO has been trying to bring an end to its current round of free trade talks, which began in Qatar in 2001.

Advocates of a deal say it would help end poverty in developing countries, while rich countries could also benefit if they can sell more goods and services abroad.

But the so-called Doha Round of talks have repeatedly stalled over the amount of state aid given to key industries in Western countries, including the US and EU member states.

Meanwhile, developed countries are deeply opposed to restrictive industrial tariffs in fast-growing emerging markets such as China, India and Brazil.

Resolution in sight?

Negotiators fear that if an agreement is not reached by the inauguration of the new US president at the beginning of 2009, the text that forms the framework of current negotiations will be abandoned.

The WTO said one of the areas where there has been considerable progress is in the selection and treatment of sensitive products and tariff quotas.

Separately, the WTO has once again ruled against the European Union import duties on bananas - the 11th time the EU's banana regime has been accused of flouting world trade rules.

The case was brought by the US, which claims that the EU favours Caribbean and African producers.

The EU has the right to appeal against the decision.