Delegates make last desperate attempt to clear logjam in talks

All the movement was happening outside the halls yesterday, as trade negotiations remained gridlocked and hopes faded that a breakthrough would emerge before the close of talks tonight.

Yesterday afternoon the 149 voting members of the WTO published a draft report on the status of negotiations. Dubbed the 'draft ministerial text' in WTO jargon, the report reflected vast divergence over how to lower trade and tariff barriers in the key agricultural sector and failed to resolve the thorny debate over a special package for the world's poorest countries.

That the text fell short was one thing most were able to agree on. Kamal Nath, a leading voice for the G-20 alliance of developing countries, said there were 'serious flaws' in the text as it failed to address key demands such as a timeline for eliminating government subsidies on agricultural exports.

'[The text] lacks ambition, it lacks balance and we hope it can be improved,' said European Commission trade chief Peter Mandelson.

US deputy national security adviser Faryar Shirzad said: 'We came into this meeting with our expectations lowered significantly in terms of what could be achieved.'

The focus now turns to Hong Kong II, a meeting to be held sometime in the next few months, probably in Geneva.

Negotiators will have to scramble to bridge great divides over export subsidies, farm tariffs, industrial goods and services, as well as agree on a package to grant duty free, quota free market access for the world's 50 poorest nations.