UK prime minister Gordon Brown has warned trade negotiations are at a crisis point, but says agreement with South American countries could secure a last-minute deal.

Mr Brown, speaking to reporters at the G8 summit in Hokkaido, Japan, said the World Trade Organisation's Doha round talks were "at a minute to midnight".

He warned that "protectionist sentiment in the world is growing" and that, in a time of global economic slowdown, the threat to living standards is also growing as a result.

"This is the best chance we have to send a signal that protectionism should not hold the world economy back," Mr Brown said.

"I've also talked to my European colleagues who have said very clearly that he is against the protectionism that exists now both in Europe and around the world.

WTO head Pascal Lamy will hold the next round of talks on July 21st. If these "make or break" negotiations fail, Mr Brown warned, there may not be any further progress for at least a year.

Talks between the prime minister and Brazilian president Luiz Inácio Lula da Silva appear to have made progress, however. Mr Brown said he believes Brazil is "key" to success in the talks because of its leadership of South American trading bloc Mercosur.

He added: "The time for technical negotiations is drawing to an end. The key decisions now are political ones and we must act decisively now. The cost of failure is simply too great.

"I believe that President Lula is now making possible a resumption of negotiations with the hope that what has eluded us for months is now possible in the next few days."

Mr Brown has the backing of all other G8 leaders on the issue. A statement issued today in Hokkaido, Japan, said: "We reaffirmed our commitment to resist protectionist pressures and expressed our strong will to work toward the conclusion of an ambitious, balanced and comprehensive WTO Doha agreement."
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