Lamy, on a week-long tour of three Southeast Asian countries, said the tensions associated with the war could help galvanize WTO members into action on trade reform due by the end of 2004 in the Doha round of talks.

"I believe the geopolitical tensions are there, but that they can work on the positive side to reinforce the view that the economy of this world needs good news," Lamy told a press briefing here.

"The multilateral system is available in WTO with rules, with disciplines, with enforcement mechanisms, and what we need in the present circumstances is more of that rather than less of that."

"Hence the sort of added impetus we believe it (war) should give to the ongoing negotiations."

Lamy said European trade officials have remained in close contact with their American counterparts to assure continuity on trade issues despite the political differences between some EU members and the United States over the war.

"We would go on addressing the frictions we have here and there with particular care so that there is no spillover of trans-Atlantic political tension into the trade field," he said.

WTO members failed Monday to meet the March 31 deadline to establish parameters for talks on further liberalising farm trade, a key element of the overall trade liberalisation plan.

Lamy concluded two days of talks Tuesday with senior Thai politicians and economic officials.

He stressed the EU and Thailand were still confident that the Doha round would be completed on schedule by the end of 2004.

SPACE.WIRE