World trade talks in Cancun, Mexico, have collapsed amidst serious differences between rich and
poor nations. The main sticking point was the
refusal of rich countries to cut huge subsidies
they give to their farmers.
Developing nations were also angry about European proposals for new rules on foreign investment, which they feared would open their industries to control by foreign multinationals. The failure of the Cancun talks threatens to postpone implementation of the Doha Development Agenda, a roadmap for multilater`al trade liberalization adopted by the WTO in the Qatari capital, Doha, in 2001. Rich countries have expressed their regret at the failure of the
Cancun global trade talks, with many calling for reform
at the World Trade Organisation (WTO).

The World Bank has calculated that a well drafted trade pact would add $520bn to the world economy by 2015 and lift
144 million people out of poverty. European Union (EU) Trade Commissioner, Pascal Lamy, stated that the failure was "not only a severe blow for the WTO but also a lost opportunity for developed and developing countries alike". Many argue that the WTO now needs to re-examine its structure in order to produce results more efficiently.  According to some, the failure of the conference places an extra burden on global trade and could endanger economic recovery, although the effects are unlikely to be
immediately apparent. "It's bad news for world growth," Lamy emphasised adding that the failure to strike a deal meant, "There are only losers."

The EU and Japan had urged a prompt start to talks on the Singapore issues including how countries treat foreign investors, the standards for anti-monopoly and cartel laws, greater transparency in government purchasing – intended to help foreign companies win public sector business – and trade facilitation, which includes simplifying customs procedures. The developing countries balked at including these issues in the trade talks, especially investment rules, because many want to retain control over their own key industrial sectors. They also argued that the complexity of negotiating in completely new areas would leave them at a disadvantage compared to the rich countries, which would benefit from their greater technical expertise. Deep divisions on agriculture also split the conference with developing countries clamouring for an end to trade-distorting subsidies that benefit farmers in rich countries. Lamy was accused of putting unacceptable pressure on developing countries in
a closed late night meeting in Cancun. Africa and other developing regions have insisted that they are not ready for the Singapore issues because they would grant big Western corporations unfettered access to their domestic markets.

African nations, in particular, felt their concerns were being dismissed. I thought, "Why are we here?" one participant told the internet news site AllAfrica.com. Wiseman Nkuhlu,
a senior economic adviser to the South African president and head of the secretariat of the New Partnership for Africa's Development (Nepad) emphasised that US and EU subsidies on cotton and sugar had devastated the economies of poor states like Mozambique, Angola and Burkina Faso and will continue to do so. James T. Morris, Executive Director of the World Food Programme also expressed his disappointment at the failure of WTO negotiations to introduce fairer agricultural trade. He stated: “Just one week’s worth of the $300 billion in agricultural subsidies paid annually by rich nations to their own farmers would wipe out the need for food aid this year and go a long way towards halving the number of hungry people.” As negotiators ponder the
next steps, governments in the developing world and international donors need to invest in agriculture and
social safety nets to ensure that hungry people stay alive and productive until the promised trade benefits arrive.
He said: “Let’s hope that isn’t too distant,: with each day that passes another 18 000 children die because they don’t have enough to eat.”