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G-7 calls for global trade treaty

India offers 50 per cent cut in tariff on goods, urges developed countries to follow suit

LONDON: The World Trade Organisation must make significant progress toward a global trade treaty when it meets in Hong Kong later this month, Finance Ministers from the world's seven wealthiest nations said on Saturday.

Britain's Treasury chief Gordon Brown, who hosted a meeting of G-7 Finance Ministers and central bankers, called for an ``ambitious outcome'' to the Doha trade round by the end of 2006.

U.S. Treasury Secretary John Snow said trade liberalisation was essential to boost the world economy and alleviate poverty.

``We cannot allow it to fail,'' said Mr. Snow, who urged the European Union and Japan to make ``significant moves forward'' on agriculture.

Brazil and India, which also attended the talks, offered further cuts in tariffs on industrial goods, but demanded further action by the European Union and the United States on farming subsidies and tariffs.

A critical step

The G-7 Ministers said the Hong Kong summit marked a ``critical step'' toward a global trade deal and said the ``opportunity must be seized.'' The statement said the G-7 had agreed to increase trade-related assistance to developing countries to $4 billion a year by 2010.

Trade negotiators are trying to agree on a binding treaty lowering trade barriers across all sectors. Agriculture has proved a sticking point and the trade round, launched in Doha, Qatar in 2001, is already well behind an original December 2004 deadline.

The E.U. has offered to reduce agricultural tariffs — but not as much as other big agricultural producers are demanding, and it wants concessions in other areas, notably service industries and market access for industrial goods.

In an effort to make progress at the weekend summit in London, Mr. Brown invited Ministers from India, Brazil, China, South Africa and Russia to join the G-7 countries — the United States, Britain, Canada, France, Germany, Italy and Japan.

India, which has offered a 50 per cent cut in tariffs on industrial goods, said it was ``willing to undertake higher cuts provided developed countries can match or take higher cuts.''

"End subsidies"

The country said in a statement it was ``prepared to move forward'' offering greater market access in services, depending on the response of other countries. It demanded an end to agricultural export subsidies and all ``trade distorting domestic support.'' Meanwhile, Brazil said in a statement that it would offer further cuts in industrial tariffs, depending on moves by the E.U. and the U.S. — AP

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