WTO chief: beakthrough needed soon on Doha deal

GENEVA, Dec 18 (Reuters) Major economies need to find a way to get global trade talks moving in the coming months, or a deal may take years to achieve, World Trade Organisation (WTO) chief Pascal Lamy said on Monday.

Lamy, participating in an Internet discussion set up by the WTO, said a breakthrough on reducing agricultural tariffs and subsidies was necessary to give momentum to the rest of the five-year-old Doha round negotiations, halted in July because of an impasse over farm goods.

''We have a big challenge when it comes to mustering the necessary political will among the key parties to make the Doha round a success. But this does not make it impossible,'' he said.

''If we fail to achieve this in the next weeks and months, I'm afraid the wait could be long, as you suggest,'' he said, responding to a question about whether it could take two years to conclude the round without swift progress.

Some technical negotiations restarted last month in Geneva, but high-level talks have not yet resumed. The aim is a pact that reduces subsidies and stimulates global trade flows.

Agriculture is the most sensitive issue. The United States is reluctant to roll back protection for its farmers without an assurance that they would in return have better access to overseas markets for their goods.

Lamy said in the online chat that it would be useful for small groups of countries to work out an agreement on their own which could then be floated to the WTO's 149-country membership for approval.

While acknowledging some concern over whether the US Congress would renew soon-to-expire trade negotiating powers for the White House, which are crucial to Washington being able to finalise a deal, Lamy said he remained hopeful that an agreement could be reached in 2007.

Asked when he expects the pact to be agreed, he said: ''Not this year. Maybe next year, let's hope next year. If not next year, things become more complicated.'' REUTERS PKS BST0052