DAVOS: US trade chief Ron Kirk admitted Saturday it was impossible to sell free trade to Americans in the current economic climate as the WTO's Pascal Lamy put paid to hopes of a rapid global deal.
"Frankly, more and more Americans of all persuasions believe that we have swapped jobs for cheaper T-shirts and iPads," Kirk told the Davos meeting of financial and political elite.
"Wherever you are in the world, just showing up and saying 'trade is good' doesn't sell in public in most places.
"You have to demonstrate how your trade policy is sustaining economic growth with a direct line, not a dotted line, to job creation."
As if to vindicate Kirk's progrnosis, Australian Trade Minister Craig Emerson, who arrived late for the debate on world commerce, told the forum that he was delayed by protestors.
"Occupy World Economic Forum is not yet fully convinced of the benefits of free trade," he said.
Amid the unpopularity of free trade, the World Trade Organization's director-general Pascal Lamy admitted that "the big deal will not be there," referring to the long-awaited Doha global free trade deal.
Talks for the accord have stalled a decade after they were launched in the Qatari capital as rich nations and emerging economies fail to bridge gaps over the level of cuts to industrial goods tariffs and farm subsidies.
"The big deal will not be there, because the big deal imply that this question ... which is 'what's the right balance of obligation between developped and emerging countries?'," said Lamy.
"They can't find this because they don't have the necessary political energy to compromise."
Instead, more countries would focus their energies on sealing smaller agreements, said Kirk.
"You're going to see more and more countries turn to bilateral and regional engagements because of the difficulties of finding a consensus among 153 countries," said Kirk.
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