Sydney, August 2:

The world’s largest trading powers will meet in Australia next month in a bid to salvage failed global free trade talks, the government said today. Trade Minister Mark Vaile said he would propose a compromise over farm aid in an effort to break the deadlock between the European Union and United States. He said the extended meeting of the 18-member Cairns Group of agricultural exporters would aim to “inject some energy” into the Doha Round of talks, which collapsed last week.

World Trade Organisation (WTO) chief Pascal Lamy, US trade representative Susan Schwab and US agriculture secretary Mike Johanns had indicated they would attend, Vaile said. EU trade commissioner Peter Mandelson has also been invited.

Vaile’s office said Canberra was also ‘looking at the possibility’ of inviting the major Group of Six (G6) trading powers ‘to meet on the margins.’