The need to liberalise world trade will be the theme of US President Bill Clinton's address to mark the 50th anniversary of the World Trade Organisation (WTO) on Monday.

World leaders are gathering in Geneva for the anniversary, which coincides with the WTO's second ministerial conference. Those expected include British Prime Minister Tony Blair, Brazilian President Fernando Cardoso, Cuban President Fidel Castro and South African President Nelson Mandela.

But a mass protest in the Swiss banking city over the weekend was a reminder that the 132-nation WTO will not have a clear ride in turning the free-trade orthodoxy into a global reality.

Tensions between the US and Europe over agricultural policy could also cast a cloud over the talks.

Bill Clinton will call for trade liberalisation

White House spokesman Michael McCurry indicated that in Mr Clinton's address "there will be some significant words uttered on trade".

The thrust of the conference will be the same as the American president's speech. The WTO wants global free trade in goods and services during the next century, and conference will discuss how to realise that goal.

"This conference will kick off an extremely important and complex process," said WTO Director-General Renato Ruggiero.

Ministers at the conference will assess the progress made in free-trade agreements in areas such as telecommunications, financial services and information technology.

They will also address the question of whether another major trade-negotiating round should be launched - a round that may eventually have to deal with broader trade-related issues such as workers' rights, the environment and competition policy.

Tackling tariffs

A particular obstacle in the way of the WTO's vision is the high tariffs in agriculture and textiles - two of the key exports in developing countries such as Bangladesh and India.

Billed as a transitional conference, it is not expected to make many major economic decisions. It may well however decide on whether to allow free trade on the Internet, a move pushed by America.

The conference will also consider ways of ensuring that markets stay open amid the financial and political crises rocking Asia.

Fidel Castro denounced the WTO as loaded in favour of the US

A prominent dissenting voice was provided by President Castro, who denounced the WTO as a battlefield where only Washington ever won.

His concerns were shared by 5,000 people who marched though Geneva at the weekend denouncing the WTO as the tool of multinational firms to exploit the world's poor.

The conference takes place amid feelings in the north and the south alike that open trade causes social and economic dislocation, and some participants feel there may be political pressure for a swing back to protectionism.

Tensions over agriculture

There are also tensions between the US and Europe over agriculture, caused by the agricultural subsidies which are anathema to the prevailing dogma of the WTO.

With farmers reeling from a months-long slide in world grain prices, Washington has warned of retaliation against European Union export subsidies.

The EU hit back last week, saying it would itself respond if the United States - which this month restored assistance for poultry exporters - crossed the subsidy threshold unfairly.

Back to top | BBC News Home | BBC Homepage	©