Brazil, China, India must open markets-US

WASHINGTON, July 7 (Reuters) The United States accused Brazil, China and India today of hiding behind poor nations in world trade talks and said richer developing countries had to open their markets if a crisis in the negotiations was to be overcome.

U.S. trade chief Susan Schwab said she did not think it was too late to get a deal, adding trade would be a focus at a meeting of G8 leaders -- heads of state from the world's seven industrial states plus Russia -- later this month.

Brazil and India's leaders were also expected to attend.

''There is a session where the G8 leaders will probably be talking about trade and there is an outreach session where we will have some other leaders including (Brazilian) President (Luiz Inacio) Lula, (Indian) Prime Minister (Manmohan) Singh and others,'' she added.

A weekend meeting of trade ministers from so-called G6 leading trade powers in Geneva broke up in disarray when they were unable to resolve any differences over farm and industrial goods, which along with services make up the three ''pillars'' of the negotiations.

But Schwab said on Friday that World Trade Organization, or WTO, members needed to avoid ''defeatist thinking.'' ''Some advanced developing countries, arguably emerging powerhouses, would like to hide behind the least developed and the poorest among us who clearly should be given a pass in these negotiations,'' she said.

''The Brazils, the Chinas, the Indias of this world can and should expect to participate in this negotiation, including opening their markets to benefit other developing countries,'' she added.

The Doha development round began nearly five years ago with the aim of boosting global growth and lifting millions out of poverty. Poorer nations have long insisted that richer countries must open their agriculture markets before they will open their industrial and services markets.

Schwab added that the United States had clearly signaled its willingness to ''modify'' proposed cuts to the billions of dollars it spends annually on domestic farm subsidies and had no intention of giving up on the talks.

RUSSIA TALKS CRITICAL ''Maybe we all needed to get to the edge of the precipice and ... see that yes in fact this could fail,'' said Schwab.

WTO chief Pascal Lamy must now act as broker in the increasingly desperate bid to reach a free trade deal by the end of the year.

But diplomats and observers of the negotiations say the St.

Petersburg G8 summit on July 15-17 may decide the outcome of the WTO talks. A clear signal of readiness to make the needed concessions must come from the heads of government of the major trade powers, they say.

''There are no current plans for a gathering of the G6 or full WTO membership but certainly those could be pulled together fairly quickly and all of us would not be surprised if we end up in Geneva at the end of July,'' Schwab said.

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