Opposition from increasingly important China and India derailed efforts to negotiated a global trade deal Tuesday. With the talks stalled, two economic experts assess the impact on American and international businesses and farmers.
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PASCAL LAMY, World Trade Organization Chairman:
I think it's no use beating around the bush. This meeting has collapsed. Members have simply not been able to bridge their differences.
That sober statement from the World Trade Organization chairman in Geneva yesterday essentially ended this week's negotiations and marked the failure of seven years of work by WTO member countries.
More than 150 countries had been trying to find the right recipe for a broad agreement that would have lifted trade barriers on goods and promoted global commerce.
What members have let slip through their fingers this time is a package worth more than $130 billion a year in tariff savings.
The deal was blocked by developing nations, led by China and India. Their concern was agricultural tariffs and whether they can feed their own people at a time of soaring costs worldwide for food staples. Both nations said they need to protect their farmers from greater competition.