G7 powers see window of opportunity on trade talks

ESSEN, Germany, Feb 10 (Reuters) - Finance ministers from the world's leading industrial powers threw their weight behind a revival of global trade talks on Saturday but offered little insight on how to break the deadlock.

The World Trade Organisation's Doha round, named after the Qatari capital where it was launched in 2001, was suspended last July with the United States, Europe and developing countries at loggerheads over farm trade reform.

A breakthrough is needed in the next few months if U.S. lawmakers are to renew the Bush administration's trade negotiating powers, due to expire in July.

''We have to use this window of opportunity,'' said German Finance Minister Peer Steinbrueck. ''It was noted with great seriousness that if one cannot use this window, the alternatives are worse.'' Finance ministers and central bank governors from the Group of Seven countries -- United States, Japan, Germany, Britain, France, Italy and Canada -- were meeting in the industrial German town of Essen.

Officials from China, Brazil, India, Mexico, Russia and South Africa were also invited.

Advocates have billed the Doha round 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.

A communique issued after the G7 meeting played up the benefits a Doha deal would bring.

''We firmly believe that all participants have the responsibility to ensure a successful outcome of the Doha round as it will enhance global growth and contribute to poverty reduction,'' it said.

The communique also voiced support for aid-for-trade deals whereby donor countries offer money for infrastructure projects in poor countries as a sweetener for trade liberalisation.

REUTERS BDP VC2350