New Delhi: World Bank on September 18 said the "collapse" of Cancun World Trade Organisation (WTO) Ministerial was not surprising as it was for the first time that the concerns of developing countries were recognised on multilateral trade issues.

"The setback is not surprising. This is for the first time there was recognition of the needs of developing nations," World Bank country-head Michael Carter said.

But the "collapse" of Cancun meeting could not be construed as a setback to the rule-based multilateral trading system, which WTO represents, he said.

"Cancun has collapsed but WTO did not," Carter said, adding the annual International Monetary Fund- World Bank (Fund-Bank) meeting would discuss the failure of Cancun Ministerial as global trade served as an engine of growth to developing nations.

He said there was validity in developing countries' argument that huge farm subsidies of over $ 300 billion in developed nations denied market access of agriculture products of third world nations.

Also, he said there was "huge gap" between farm subsidies of developed nations and their aid flows to developing nations at about $ 50 billion.

While criticising developed nations for the huge farm subsidies, the World Bank officials said the developing countries also need to carry out trade liberalisation and reduce barriers.

"The developing countries' trade barriers are more towards other developing nations than industrialised nations," Carter said.

PTI

WTO talks collapse; end without any declaration