NEW DELHI - Europe and the United States must agree to cuts in farm subsidies in order to secure a global free trade pact, World Trade Organisation (WTO) chief Pascal Lamy said Wednesday.
But Lamy also urged key developing countries like India, Brazil and South Africa to open their markets to industrial imports to help facilitate the drafting of a trade liberalisation deal.
"We are approaching the moment of truth in the next few days," Lamy was quoted as saying in New Delhi by the Press Trust of India news agency.
"Developed countries like the European Union and United States will have to reduce subsidies in agriculture," Lamy said, adding that India, Brazil and South America would have to slash industrial tariffs.
"This round is the development round and trade needs to be rebalanced in favour of developing countries," he said, adding that WTO member states would have to address "very tough and difficult issues on agriculture subsidies".
The WTO is racing against time to craft the framework of a global liberalisation accord by April 30, and then clinch an overall deal by the end of this year.
Agriculture has been a particular stumbling block, with rich nations arguing among themselves about the best way to proceed and developing nations refusing to cut tariffs on other goods until farm issues are sorted out.
India's commerce minister Kamal Nath told reporters after meeting Lamy that Indian farmers had a marginal place in the global trading system due to the enormous agriculture subsidies handed out by developed countries.
"I have highlighted that agriculture in India is not a commercial activity but a way of life and no deal that led to its displacement was acceptable," Nath said.
"Any tariff reduction must take into account the sensitivity of subsistence farmers," he said.
04/05/2006 17:37 GMT