GENEVA. Nov 10: Major powers and key emerging economies voiced reluctance yesterday to agree to drop permanently all tariffs on goods from the world's 48 least developed countries (LDCs) — a proposal many once championed, reports Reuters.

The European Union. Japan and Canada told a meeting at the World Trade Organisation (WTO) discussing the inclusion of the pledge in a key declaration to oe issued in Seattle next month that they could not commit themselves totally to the idea.

Diplomats said the United States held back, saying that President Bill Clinton would is-

sue a statement on the issue shortly, but there was no immediate indication on what this would contain.

Brazil and India, two of the most influential developing countries in the 134-member WTO, argued that large regions of their own were as poor as most LDCs and insisted that the richer powers should bear the main burden.

Brazil, which like all other emerging economies would have a transition period under the proposal, also argued that some goods from these countries were highly competitive.

The initiative was intended as a key element of a declaration to be issued on December 3

by WTO trade ministers at the end of a four-day meeting in Seattle, which had been expected to agree to launch a new trade round next year.

But Tuesday’s debate, diplomats said, showed that even on what had been viewed as a non-contentious issue, government who have the final saying the trade body were reluctant to give way on what they see as vital issues.

"If we can't agree on this, what, can we agree on?" demanded one trade envoy sympathetic to the plight of the LDCs who account for only one half of one per cent of global trade.

At the centre of the problem

was the wording of the declaration, which the many powers felt went too far. A draft is being compiled by WTO General Council chairman All Mchumo of Tanzania and WTO experts.

The diplomats said the big powers, echoed by Switzerland, made clear they did not like the commitment to bind, or effectively promise to keep for all time, the measure or the idea of extending it to all LDC exports.

Textiles produced in Bangladesh, one of the biggest LDCs, and some finished agricultural products were believed to be at the centre of their concern.