Time running out for trade deal, warns Lamy

Time is running out for a global trade deal and the impetus for any breakthrough lies with the world's major economies, the World Trade Organisation chief said today.

"Time-wise, we really are in a dangerous situation. The time for delay is over," WTO Director-General Pascal Lamy said.

"If WTO members are serious about creating a more open, equitable trading system, I believe there is no option but to move now," Lamy told reporters in Tokyo.

Lamy is in Japan as part of a tour to bring key countries closer to agreement over a trade liberalisation pact that has been billed as a recipe for lifting millions out of poverty.

Crisis talks held in Geneva last week did not result in any breakthrough.

Lamy emphasised, however, that only real concessions from the world's biggest economies would help end the deadlock.

"The key mending zone for these talks lies in real cuts in subsidies and real increase in trade flow. We cannot reach an agreement that falls short of these," Lamy said.

"The G6 countries have a bigger responsibility than others in solving this stalemate," Lamy added, referring to the WTO heavyweights Australia, Brazil, the European Union, India, Japan and the United States.

The complex trade talks, launched in Qatar's capital Doha in 2001, have stalled as poorer countries demand that the EU and United States offer greater cutbacks in support for American and European farmers.