Blair adviser says "Outrageous" to miss trade deal now

LONDON (Reuters) - It would be "absolutely outrageous" for world powers to miss out on a global trade deal this year as the different positions are so close, an aide to British Prime Minister Tony Blair said on Wednesday.

Justin Forsyth, Blair's special adviser on international development, said there was a glimmer of hope after trade meetings in India in April and leaders were now involved in "frantic diplomacy behind the scenes".

He said Blair had spoken to U.S. President George W. Bush and German Chancellor Angela Merkel about trade and that British representatives would meet an Indian team this week.

The World Trade Organisation is pushing to conclude the Doha round of trade talks by the end of 2007.

But there are no tangible signs the leading players -- the United States, the European Union, India and Brazil -- have resolved differences over agricultural tariffs and subsidies.

"Whether we will get there or not, I'm not sure. I think it's a 50-50 chance. I would say, as someone who is quite involved in the negotiations, the gap is very small," Forsyth told a conference in London on African development.

"The actual gap is literally a few percent and a few billions. And if we fail because of a few percent and a few billions in terms of subsidies or tariff lines it would be outrageous, absolutely outrageous," he said.

Blair pushed African development to the top of the agenda as president of the Group of Eight industrial nations in 2005 and it will figure again at a G8 summit in Germany in June.

Britain sees a global trade deal as crucial to helping the world's poorest continent develop as many African nations should benefit if rich countries cut agricultural subsidies.