By Anne-France White - 25th January 2007
Angela Merkel has called on all nations to work together to reach agreement on the stalled world trade talks.
Speaking in Davos at the World Economic Forum, Merkel said the chance of a breakthrough in the stalled Doha round was "doubtless there" and that a deal would be in everyone's interests.
But she added that the EU, US and emerging as well as developing countries must work to “bring their positions closer to each other”.
Her comments come as WTO chief Pascal Lamy prepares to host a meeting of around 30 trade ministers in the sidelines of the Davos summit to try to kick-start the Doha talks.
The negotiations were suspended last year following disagreements over agricultural subsidies and market access.
The chancellor repeated her call for a new era of trade relations between the EU and US, arguing that the EU should aim towards building “structures similar to the internal market” with its transatlantic partner.
In a wide-ranging speech, Merkel also outlined Germany's plans for its presidency of the G8 group of leading economic powers – including removing exchange rate imbalances and boosting hedge fund transparency.
Merkel said Germany wants a new form of dialogue between the developed countries and developing nations such as Brazil, China, India, Mexico and South Africa – starting at the forthcoming G8 summit in Heiligendamm.
"The dialogue should be started there and should be taken up by other international organisations," she said.
Rejecting the idea that the state will become obsolete under globalisation, Merkel said that “with the right political framework and conditions, we can shape globalisation”.
Arguing that economic interests and environmental concerns can and should be reconciled, Merkel also urged all countries to join a post-Kyoto settlement on cutting greenhouse gases and challenged developing countries to share increased global responsibilities.
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