Further liberalisation of US and European trade could encourage others to follow, US Treasury Secretary Henry Paulson and British Finance Minister Gordon Brown said in the Wall Street Journal on Monday.
Ahead of their meeting in London on Tuesday, Paulson and Brown said in a joint article that urgent action was needed to restart global trade talks, in a sign that the United States may be preparing to cede some ground in order to reach a deal.
"With the fate of Doha in the balance and multilateral trade rules a possible casualty, we urgently need people on both sides of the Atlantic who are prepared to make the case for trade and commit to policies that make it work," the two finance ministers wrote.
"North America and Europe are the two largest free-trade areas in the world. We are also the two largest economies. Further trade liberalisation led by our continents could encourage others to follow." World Trade Organisation chief Pascal Lamy suspended the so-called Doha round of talks in July after trade ministers failed to break a long-standing impasse over farm subsidies and tariffs.
The round has been billed as a once-in-a-generation chance to inject up to $300 billion a year into the world economy and lift millions out of poverty. "Current talks are focused on the agriculture sector, a vital part of economies across the globe. We should recognise, though, that expanding trade in manufacturing and services is also critical to economic progress everywhere," the two men wrote.
"In particular, increased openness in financial services can be a catalyst for growth in all sectors of an economy. Strong economies everywhere have competitive capital markets to support investment and growth." They said that if prosperity is to be preserved, it must be shared widely. "There can be no better signal of our commitment to co-operation, peace and prosperity than working for an ambitious and comprehensive trade agreement as the route to a more successful globalisation."
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