Britain's Brown says new global trade deal possible in next few weeks

British Prime Minister Gordon Brown said Saturday he was optimistic a new trade deal could be reached in the next few weeks to salvage the troubled Doha round of world trade talks.

Trade is one of the most divisive issues facing leaders of the 53-nation Commonwealth of Britain and its former colonies, which includes some of the world's wealthiest countries as well as some of the poorest. Leaders of the group hope they can forge a united position on trade and other contentious issues such as climate change by the time their biennial summit wraps up Sunday in Uganda.

Speaking after talks with Indian Prime Minister Manmohan Singh, Brown said it was "very important that in the next few weeks we push hard to get a trade agreement."

"I do believe that a number of the outstanding issues can be resolved," he said.

The talks have repeatedly stalled since their inception in Qatar's capital, Doha, in 2001, largely because of wrangling between rich and poor nations over eliminating farm subsidies and, more recently, barriers to manufacturing trade.

Commonwealth Secretary-General Don McKinnon this week urged rich countries to lower trade subsidies to give poor countries better access to world markets.

Brown acknowledged that rich countries would have to ease protections for their farmers.

"I think there's a consensus about the things that need to be done," he said. "Obviously we need a cut in agricultural subsidies in the European and American markets. We need progress in opening up manufacturing. We need to understand the sensitivities of rural farmers in India and elsewhere."

The U.S. and European Union have been increasingly vocal in recent weeks in their criticism of Brazil, India, South Africa and others for refusing to compromise.

Washington and Brussels say six years of negotiations could collapse without a breakthrough in the coming months.

Asked if he shared Brown's position, Singh said he agreed completely.

Brown said Commonwealth leaders should send a signal that "a globalization which is based on open markets, free trade and flexibility is the best way forward to create growth and prosperity in the world economy."

Speaking later to reporters, Brown said Commonwealth leaders had discussed ways to strengthen international financial institutions including the World Bank and International Monetary Fund so they could respond better to financial turmoil like the fallout from the U.S. subprime mortgage crisis.

"What we have recognized ... is that the world's institutions are not strong enough to deal with the impact of events as they happen," Brown said. "So when you have financial turbulence in the States that affects the whole of the world, our response is not yet good enough."

Brown said the U.S. economy had slowed and European economies would grow more slowly next year as a result of the turbulence. He said a new trade deal and stronger international institutions would help protect the global economy from future crises.

"What is increasingly clear is that each country over the next few weeks and months has got to steer a course of stability in what are uncertain world conditions," he said.