The so-called "G6+1" group of the United States, European Union, Japan, India, Brazil, Australia and China were thrashing out proposals aimed at breaking a deadlock in negotiations here that have so far yielded little headway, sources close to the process said.
The talks, aimed at securing a breakthrough in the Doha trade liberalisation round, were expected to go on into the early hours of the morning, the sources added. Earlier, the head of the World Trade Organisation, Pascal Lamy, conceded that progress had been modest so far, while British Prime Minister Gordon Brown reminded everyone that the talks were at "the 11th hour."
Emerging and developed countries have slipped into a familiar pattern of demanding new moves from each other, with the success of this week's high-profile gathering hinging on whether they can leave entrenched positions to find common ground.
Indian Commerce Minister Kamal Nath, a leading emerging country representative, offered observers some cause for optimism by praising US attempts to break the deadlock but he was quick to add that more was required. "The first thing we must appreciate is that the US is moving," he said. "Up to now there was no movement. The fact movement has started is a good sign."
The United States and the European Union have made opening gambits by offering to reduce trade-distorting assistance to their farmers and they are now waiting for steps by developing nations to open their markets for industrial products. Nath gave no indication he would give ground on industrial products but said he would make a "good offer on services" - the final component of the talks.
His failure to demonstrate flexibility on industrial products led a spokesman for the US trade delegation, Gretchen Hamel, to question if he was "reading from old talking points." She added: "If the emerging markets don't contribute it will not be truly be a development round." The WTO has convened a meeting here of about 30 leading trade negotiators this week with the aim of mapping out a deal to conclude the long-delayed Doha round of global trade talks.
The round began in the Qatari capital seven years ago with the aim of helping poor countries take advantage of the freer global flow of goods and services. But Doha has since been delayed by disputes between developed and developing nations over subsidies and tariffs for farm and industrial products. "Progress has been modest until now," Lamy conceded in comments to the WTO's 153 members, his spokesman Keith Rockwell said Wednesday.
In London, British Prime Minister Gordon Brown warned that the talks were at "the 11th hour" and "a critical moment." "If we do not succeed in the next few days, then it is very difficult to imagine people returning quickly to the negotiating table to secure the outcome that is needed," he said.