The World Trade Organization (WTO) in Geneva - An ambitious and balanced outcome to the Doha Development Agenda would be one of the most effective ways to strengthen the multilateral trading system, generate economic growth, create opportunities for development and raise living standards across the world

The Doha round of global trade talks may be “on the verge of failure”, an association of global business leaders warned on Tuesday.

The statement from six business associations, including the US Business Roundtable, an association of chief executives of leading corporations, says delay in the agricultural talks is holding up progress in goods and services liberalisation, which is economically far more significant.

“Only a few months remain for World Trade Organisation member governments to save the Doha development agenda,” the statement says. “The great hopes for global economic growth and development promised by this trade round are now at serious risk.”

The WTO has four months remaining before December's ministerial meeting in Hong Kong. It is reported that progress in the talks has been slow. Pascal Lamy, the WTO's new director-general, said last week that he “does not have a magic wand” to conjure up a deal.

To gain momentum, a breakthrough in the agricultural talks is required. The view is that unless there is a commitment from the EU and US to cut farm tariffs rather than the lesser goal of ending export subsidies, the emerging markets such as India and Brazil are unlikely to agree radical liberalisation of their goods and services markets.

Last month India announced a more ambitious offer to liberalise its service industries, making it easier for foreign architects and life insurers, among others, to set up in India. However, officials stressed the offer would merely legally bind the liberalisation the government had already carried out unilaterally rather than allowing fresh business opportunities.

Tuesday's statement by business leaders represented by the US Business Roundtable, Japanese Nippon Keidanren, the European Round Table of Industrialists and by business associations in Australia, Mexico and Canada, says goods tariffs should be cut to zero in sectors where industry demands it. But that request has been rejected by India, which maintains significant tariffs on many of its manufactured imports.

Last July, the International Chamber of Commerce said that it is concerned and deeply disappointed with the lack of progress in talks held at the World Trade Organization in Geneva on the Doha round. It repeated its call on governments to redouble their efforts to keep the Doha Development Agenda on course toward a successful conclusion next year in the interests of global economic growth and job creation.

"This is obviously a missed opportunity to make much-needed progress ahead of the Hong Kong ministerial conference in December," said ICC Secretary General Guy Sebban. "It also means that WTO members will have to work extremely hard when talks resume in Geneva in September in order to prepare the ground fully for a good result in Hong Kong."

"The pledge of G8 leaders in Gleneagles to work toward the goal of an ambitious and balanced outcome has still to be followed up by a far stronger determination on all sides to compromise at the negotiating table in Geneva," Mr Sebban said. "ICC hopes very much that all WTO members will be prepared to make these necessary compromises in the remaining months before Hong Kong."

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"The importance of bringing the Doha round to a successful conclusion cannot be underestimated" Mr Sebban said. "An ambitious and balanced outcome to the Doha Development Agenda would be one of the most effective ways to strengthen the multilateral trading system, generate economic growth, create opportunities for development and raise living standards across the world."