Manila, September 19:

Global trade talks have reached the final lap and prospects of achieving a deal are greater today than six months ago, the head of the World Trade Organisation (WTO) said today.

“My diagnosis at this stage, both in the political and technical level, is that things are converging and a deal is possible,” Pascal Lamy said on the sidelines of a Manila forum to boost trade for poorer countries. “My own sense is that there are more chances of final convergence today than we had six months ago,” Lamy said.

“My feeling is that leaders have a common sense that we are reaching the final lap of negotiations.” He said momentum has gathered in recent weeks, with developed countries agreeing to lower farm subsidies and tariffs. “The only question is how much in ranges which have been tabled by the chairs of negotiating groups.”

There is also awareness among countries, he said, “that if this round was to fail, that will be a big issue, which probably would go beyond trade in terms of geopolitical consequences.” The negotiations, aimed at forging a global accord that would reduce trade barriers, resumed in Geneva earlier this month. The Doha round has been bogged down by bickering between rich and poor countries over cuts in farm subsidies and industrial tariffs.

Lamy said the cloudier international economic signals this year and increasing temptation for more protectionism might push China, Brazil, India, EU and the US to settle their differences to nudge the talks to a conclusion.