Collapse of WTO talks a 'body blow' for economy: Rudd

July 30, 2008

The collapse of world trade talks is a body blow to the global economy, Prime Minister Kevin Rudd says.

World Trade Organisation (WTO) officials say the high-level Geneva talks to salvage a global trade pact caved in after the United States, China and India failed to compromise on when poor countries could raise import tariffs on farm products.

Industry and farming groups expressed despair at the news, warning that Australian farmers would remain locked out of markets while the US, India and European Union countries would be able to maintain their agriculture subsidies.