Monday, July 10 2006 17:35 Hrs (IST) - World Time -

New Delhi: World Bank President Paul Wolfowitz has urged nations to 'compromise and commit to success' the next round of WTO talks in Russia on July 17 to ensure that benefits of globalisation reach the poor.

In a letter to all the G-8 (the US, Japan, Germany, France, Britain, Italy, Canada and Russia) +5 leaders (Brazil, China, India, Mexico, South Africa), Wolfowitz urged them to reach an agreement to break the stalemate in the Doha round trade talks.

"A pro-development result will yield gains for rich and poor alike," stated the letter released to the media Monday.

The World Bank has estimated that lifting of various trade barriers could eventually generate $300 billion a year in additional production for the world's economy, while developing countries could gain by as much as $86 billion, dwarfing annual bilateral assistance efforts.

To help realise the potential of full liberalisation, Wolfowitz urged "all participants in the July 17 meeting to come prepared to compromise and commit to success".

The WTO talks have stalled with developing countries demanding that the US and EU make steep cut in subsidies to their farmers, while the developed countries have sought greater market access for their industrial products and services.

"The upcoming gathering of the G-8 members and the planned outreach session with leaders from China, Brazil, India, South Africa, Mexico, the African Union and international organisations offer a unique opportunity we must take advantage of if we are to make urgently needed progress in the Doha trade talks," said Wolfowitz.

He warned that time was running out for the 149 member WTO to be fully operational and help lift millions from poverty, boost developing country income, improve global market access and reduce taxpayer and consumer costs for all - or allow the whole effort to collapse, with harm to everyone.

The World Bank chief in particular urged the US to take a lead to break the impasse.

"Washington can unlock this by stepping forward with a better offer. If this happens, the EU will at the same time meet them both with a strengthened offer," he said.

"While successfully concluding the Doha round will depend on detailed formulas and a painstaking technical process, there is the opportunity for the leaders gathered in St. Petersburg to provide the momentum essential to success," Wolfowitz has written.

Pointing out that 1.2 billion of the world's poorest people stand to benefit from a successful outcome of the talks, Wolfowitz underlined the need for a collective pledge by the US to reduce agriculture subsidies, by the EU to improve market access and the + 5 members to limit tariffs on manufactures to help seal the deal.