European Union finance ministers and central bankers called on Saturday for a speedy resumption of the suspended Doha round of trade talks to avoid damaging economic growth and warned against protectionism.
With leading trade negotiators meeting this weekend in Brazil for the first time since the World Trade Organisation's Doha round stalled in July, the EU's top finance officials said global trade was crucial to sustaining the economic expansion.
"We deeply regret suspension of the Doha development round," said Finnish Finance Minister Eero Heinaluoma, whose country currently holds the rotating presidency of the EU. "The negotiations ought to be restarted as soon as possible. All key parties must take action to secure an outcome," he told a news conference.
In a statement at the close of two days of meetings in the Finnish capital, the ministers and central bankers stressed that the suspension of the WTO talks "should not be used as an excuse for protectionist measures". European Central Bank President Jean-Claude Trichet said resuming the talks was extremely important.
The negotiations were suspended in July nearly five years after they were launched to spur the world economy and tackle poverty in developing countries. The EU, the United States and other trade powers failed to overcome deep differences, mainly over agricultural issues.
British Treasury minister Ed Balls said the breakdown was "a substantial threat to future world growth" and raised the risk "that the great trading nations are incapable of seeing beyond their narrow, immediate self-interest".
The EU has said full negotiations are only likely to resume after US congressional elections in November. But the round could yet be delayed by several more years because the "fast-track" powers of US President George W. Bush to approve trade deals expire in mid-2007.
Any extension of those powers would require approval by the newly elected Congress, something that could prove difficult to get if the Democrats take control, trade experts have said.
Economic and Monetary Affairs Commissioner Joaquin Almunia told Saturday's news conference that seeking bilateral trade deals between the EU and other countries was not contradictory to a multilateral Doha trade agreement.
European trade chief Peter Mandelson said last week the EU intended to pursue possible new free trade deals with South Korea, members of the Association of South East Asian Nations and India, although he said WTO negotiations remained paramount.
Trade experts say a proliferation of bilateral and regional deals would add to the "spaghetti bowl" effect of different rules governing trade.
This weekend's meeting in Brazil is being attended by Mandelson and his counterparts from several other key WTO countries for what officials have said will be a chance to assess prospects for the round going forward.
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