WTO members have struggled to agree on new rules to liberalize trade since the so-called Doha Round talks were launched in Qatar in 2001, with agricultural subsidies often the key sticking point.

Lamy said a crucial way “to contribute to the global economy to come back is to conclude the Doha Round.”

He said under the proposed multilateral deal, member states would cut US$150 billion in import taxes, which would be “a global stimulus that could help jump-start our economies.”

“High import taxes are a deterrent to demand where the demand is in steep decline,” he said.

Lamy also warned that Japan, a major exporter, would be a major victim of any rise in protectionism, saying, “Japan is particularly vulnerable to this downturn because trade is so central to the economy.”

He pointed at Japan’s own trade barriers, saying, “I am very aware that Japan also has defensive interests in agriculture and fisheries, but there is no free lunch in the WTO except [for] our poorest members.”

While Lamy was speaking in Tokyo, US President Barack Obama pledged Tuesday to curb direct payments to agricultural producers, addressing a key road block in the stalled multilateral trade talks.

Talks have spluttered and stalled as emerging economies challenged the US and European Union farm spending, amid opposition to safeguards protecting agricultural sectors in the developing world.

Source: AFP