Doha deal closer than ever, but uncertainties remain

By Jonathan Lynn

GENEVA (Reuters) - Long-running talks to open up world trade are closer than ever to conclusion, the head of the WTO said on Thursday, but the timing of the crucial meeting of ministers to clinch an outline deal remains uncertain.

World Trade Organisation Director-General Pascal Lamy told a meeting of WTO delegation heads called to review recent work and plot the way forward in the coming weeks that the Doha round had entered a "decisive phase".

"I believe we made solid progress and that we are now much closer to the finishing line," he told the ambassadors.

The Doha round has repeatedly missed deadlines since its launch in November 2001 to boost the world economy and help developing countries export more by freeing up world trade.

Financial crisis and soaring food prices have given the talks added urgency because a deal, while having only a long-term economic effect, would boost confidence by showing the international community could work together on global problems.

"At a time when the world economy is in rough waters, concluding the Doha round can provide a strong anchor for the world economy," Lamy said.

Lamy was speaking as the WTO forecast growth in world trade would slow this year to a six-year low of 4.5 percent amid an economic slowdown in the United States and Europe.