Talks aimed at rescuing a deal to liberalise world trade appear close to collapse in Geneva amid deep differences between delegations.

Import protection remains the main stumbling block, with the US on one side and China and India on the other.

European Union Trade Commissioner Peter Mandelson said failure of the talks was an appalling prospect.

World Trade Organisation delegates are trying to ease international trade rules and boost global economic growth.

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They are considered the last chance to save the so-called Doha round of talks.

They were launched in 2001 with the aim of remedying inequality so that the developing world could benefit from free trade.

But BBC international development correspondent David Loyn, who is in Geneva, says the round appears to be breaking down amid acrimonious public exchanges, with the US accusing India and China of blocking progress.

The US says they are being overly protective towards their own farmers and are failing to do enough to open their markets.

India's Commerce Minister Kamal Nath rejected the charge, saying: "The US is looking at enhancing its commercial interests whereas I am looking at protecting the livelihood of farmers."

Chinese Commerce Minister Chen Deming echoed Mr Nath, saying the US was "asking a price as high as heaven".

Deep freeze

Mr Mandelson, who has been criticised by some of his own EU members for offering too much in cutting farm subsidies, says only big compromises will bring a deal.

"If they do not stretch a bit further, if they do not show that flexibility, if they do not demonstrate the will to compromise... then I'm afraid then the deal will go down. It's an appalling a prospect as that," he said.

Despite the differences, there remains the will among delegates to find a solution.

Indonesian Trade Minister Marie Elka Pangestu said some negotiators were willing to stay as long as it took to reach an agreement.

But our correspondent says if it appears there are no prospects of bridging the gap the talks could wind up soon with no agreement.

That would put reform of world trade into the deep freeze for several years to come, he says.

(BBC)

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