Chinese Commerce Minister Chen Deming said Tuesday that he felt "very disappointed and regrettable" at the failure of crucial WTO talks aimed to make a breakthrough in the Doha Round.

"We, along with the other participating countries, feel very disappointed and regrettable," Chen said in a statement, following the breakup of negotiations among key WTO ministers.

Chen said the collapse of the nine-day negotiations was caused by the "inability of two countries to bridge the gap between their positions on special safeguard triggering levels." But he did not name the two countries.

Trade sources said the dispute was between the United States and India, both of whom were facing the pressure of general elections.

The two countries could not agree on the issue of SSM (special safeguard mechanism), which allows developing countries to raise farm tariffs if imports surge, thus protecting the interests of poor farmers.

The United States also refused to talk about cotton subsidies, one major concern for poor cotton farmers in African countries.

"China has fully demonstrated flexibilities and constructiveness, and sincerely hoped to reach a successful Doha Round through working together with other members," Chen said.

He said China had made major compromises and concessions on issues such as OTDS (overall trade-distorting domestic support) reduction for developed members, sensitive products, SSG (Special Safeguard) and ACC (anti-concentration clause).

At the Signaling Conference for Services, China also expressed willingness to further open its market in some key sectors.

"However, just as we were approaching the final point, some minor coefficients failed all our efforts," Chen said.

The minister said that he did not want to blame the ministers concerned.

"They may have profound and complex domestic factors behind them. Yet I cannot but express my deep regret."

Chen said Tuesday's failure was a tragic one, and it was also a "serious setback."

He urged WTO members to get fully prepared for the consequences.

"Particularly in face of world economic downturn, serious inflation and imminent financial risks, the failure will have a major impact on the fragile multilateral trading system," he said.

Chen expressed hope that what has been achieved during the nine- day meeting could be preserved as a piece of precious legacy, which can be used a lesson for future attempts of the multilateral trading system.

He also called for WTO members to reflect upon the failure and learn a lesson from it so that the quality and efficiency of future negotiations could be improved.

"Economic development has to continue. On the basis of equality and reciprocity, China is ready to further intensify the bilateral trade and economic cooperation with all WTO members," Chen said.

China would like to enhance in particular the mutually- beneficial cooperation with developing countries, including the LDCs (least developed countries) and SVEs (small and vulnerable economies), and to jointly promote further prosperity of the world, he added.

(Xinhua News Agency July 30, 2008)