Bid to Alter World Trade Suspended

Attempts to restructure the world trading system were suspended today after negotiators failed to end an impasse between the United States and the European Community over reductions in farm subsidies.

Squabbles between the Americans and the Europeans were so intense that some delegates feared worsening relations between the United States and the 12-nation EC.

The talks had been aimed at modernizing and expanding free-trade rules. Reaching an agreement could have doubled world trade from its current annual $3.8 trillion over the next decade, according to a U.S. estimate.

Lowered tariffs could bring cheaper consumer prices on imported goods. Businesses and Third World farm exporters could benefit from more openings to foreign markets. Proposed new rules could provide better protection against patent and copyright theft.

Some officials held out hope for an eventual accord.

David Woods, spokesman for the General Agreement on Tariffs and Trade, or GATT, said the 107-nation group will pursue talks at a lower level in Geneva.

U.S. Agriculture Secretary Clayton K. Yeutter said success in the next attempt “is clearly going to require changes in the European position on agriculture. Without a significant and substantial change in that area, we cannot bring this exercise to a conclusion.”

EC Agriculture Secretary Ray MacSharry, without naming the United States, indirectly accused Washington of pushing early in the weeklong conference for suspension--in effect failure--of the most ambitious attempt ever to revamp the world trading system.

“I think too many people came here hoping to walk away,” MacSharry said. He added that the EC’s position would not change: “We have what we believe to be a very concrete proposal on the table.”

Indian Commerce Minister Subramaniam Swamy predicted a break of four to six weeks while an assessment of the situation is made at GATT headquarters in Geneva.

Analysts fear that a complete failure of the GATT talks could mean a surge of protectionism and the creation of inward-looking trading blocs.