The World Trade Organization's Cancun conference, called to galvanise momentum toward a new multilateral trade accord, collapsed yesterday, done in by a bitter North-South rift.

The WTO played down what it termed a "setback," the US blamed some delegations it did not name for refusing to compromise, while developing countries celebrated their new-found strength.

"The meeting did not come to a successful conclusion," Brazilian Foreign Minister Celso Amorim said after five days and nights of fruitless and sometimes bitter bargaining between delegations from the 146 WTO member states.

But, speaking on behalf of more than 20 colleagues, he said the conference was a victory for developing countries that showed unity in pressing their demands, particularly for the reduction of agriculture subsidies.

"This is an organization governed by consensus, and consensus was not there," said US Trade Representative Robert Zoellick.

"Whether developed or developing there were 'can do' and 'won't do' countries here," he said..

"The rhetoric of 'won't do' overwhelmed the concerted efforts of the 'can do.' 'Won't do led to the impasse".

He said "the larger lesson of Cancun is that useful compromise... requires a serious willingness to focus on work - not rhetoric - to attain the fine balance between ambition and flexibility".

Delegates said the conference foundered on its final day over what are known as the Singapore issues - cross-border investment, competition policies, trade facilitation and government procurement.

Developing countries were adamantly opposed to proposed WTO negotiations on the Singapore topics.

They feared in particular that a new international investment regime would benefit multilateral corporations at the expense of their own industries.

The European Union and Japan by contrast had urged a prompt start to talks on the Singapore issues, known for the venue where they were first raised in 1996.

The conference was also driven by deep divisions on agriculture, with developing countries clamoring for an end to trade-distoring subsidies offered to farmers in rich countries.

The European Union agreed that export subsidies on certain products deemed critical by developing countries could be removed but balked at the elimination of all such assistance by a specific date.

The US went along with demands for an end to export subsidies but demanded concessions in return.

The ministers adopted a statement stating that "more work needs to be one in some key areas" to fulfil the roadmap for trade liberalisation starting in 2005 the WTO adopted at its Doha conference two years ago.

"Notwithstanding this setback, we reaffirm all our Doha declarations and decisions," the ministers said, adding that they instructed officials "to continue working on outstanding issues with a renewed sense of urgency and purpose ..." The statement said senior WTO officials would meet again by December 15 to try again to further the negotiations, which have been deadlocked since the Doha conference.

Ugandan delegate Yashpal Tandon blamed rich countries for the impasse.

"They should have been faithful to the promise they made at Doha to talk about development," he said.

"As they did not stick to the promise made in Doha, what is the reason for us to be here? "The whole point is that Western countries utilised this meeting in order to push their issues".

As news of the collase spread through the fortress-like conference venue, several activists accredited to the gathering sang in the lobby, celebrating what they saw as a victory for poor countries.

"Rich countries over-played their hand and misjudged the strength of feeling and unity of the developing world who want to make trade fair and have a stake in global prosperity," the Oxfam international relief agency said. – Sapa-AFP.