DAVOS, Switzerland (AFX) - UK prime minister Tony Blair said a breakthrough in world trade liberalisation talks in the next few months is likely, but not certain.
Blair, who started his speech to the World Economic Forum on Saturday by saying this Davos forum would be his last as British premier, said he had held talks with US President George Bush, Brazilian President Luiz Inacio Lula da Silva and German Chancellor Angela Merkel in the past few days.
''Cautious optimism' was how it was described,' Blair said in a speech to the forum this afternoon. 'I think it is now more likely than not, though by no means certain, that we will reach a deal within the next few months.
'Countries are moving closer together, there is a re-ignition of political energy and drive and an increased recognition of the dire consequences of failure,' he said.
The WTO suspended the Doha round of trade liberalisation talks last July after negotiators from six major nations, including the US, EU, Brazil and India, failed to reach agreement over farming subsidies and market access.
Blair said a trade deal would be 'a big boost to the notion of multilateralism, help the world's poorest escape their poverty and achieve an impact on overall trade and business, three times the amount of the last trade round.'
'This is a critical priority for me in the coming period and that determination, I am pleased to say, is shared by the other major players in the negotiation.'
Blair also said he believed the G8 group of leading economies was on the verge of a breakthrough in efforts to cut carbon emissions, but said any agreement that did not have binding commitments from the US, China and India 'is not one that can deliver'.
Emissions need to be cut by 60 pct by 2050, he said adding the German presidency of the G8 wants this group of countries to agree at least the principles of a new binding international agreement to take effect when the Kyoto protocol expires in 2012. philip.waller@thomson.com paw/nt COPYRIGHT Copyright AFX News Limited 2006. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited