Indian PM Manmohan Singh attends meeting with WTO delegation in New Delhi, 04 Sep 2009Trade ministers from over 35 countries have agreed to resume high levelnegotiations later this month to break a deadlock that has jeopardizedefforts to clinch a global trade pact. The U.S. trade representativesays the global economic crisis has made it imperative to move aheadwith a new trade deal.  

The chief negotiators of World TradeOrganization members will meet in Geneva starting September 14 tograpple with issues that brought about the collapse of global tradetalks last year.

The agreement to resume high level talks onwhat is called the "Doha Round" came in New Delhi Friday following atwo-day "informal meeting" of trade ministers from over 35 keycountries.

Indian Trade Minister Anand Sharma called it a"breakthrough," and said there was a unanimous affirmation of the needto clinch a new trade deal.  

Indian Commerce Minister Anand Sharma (file photo)"There has been a breakthrough inthis meeting. If I can use this expression, the impasse in resuming thenegotiations has been broken," he said.

India hosted the meet in a bid to revive the stalled trade talks.

Themain issues holding up the trade pact are worries by developingcountries that liberalized trade could adversely impact the livelihoodof millions of poor farmers, who may not be able to compete with cheapfood imports from developed countries. Proposals to eliminate tariffsentirely on some industrial goods are also a contentious issue.

The Indian trade minister expressed optimism that a deal will be struck by next year.

U.S.Trade Representative Ron Kirk, who attended the New Delhi meeting,however warned that "hard work" remains to be done because WTO membershave not yet found common ground. He says "substance and content" willdrive the process - not setting a deadline.

Kirk called on bigdeveloping countries like India and China, whose economies are growingrapidly, to do more to open their markets to free trade.

"All ofus, but particularly those countries, that have the ability to make acontribution to the world's economy, including the advanced developingeconomies of India, Brazil, China and South Africa have I think anadded responsibility to make the tough decisions in order to bring Dohato a successful conclusion," he said.

The U.S. traderepresentative says the global economic crisis should push countries toconclude a new trade deal, which could help to pull the world out of arecession.

But a huge rally by thousands of farmers in New Delhion Thursday calling on the government to "ditch Doha" symbolized thepolitical problems that may lie ahead for developing countries instriking a deal.

The Doha talks began in 2001 with the aim ofliberalizing trade, and lifting millions of people out of poverty bygiving a boost to global commerce.