European Trade Commissioner Mr Pascal Lamy has admitted that the collapse of world trade talks in Mexico last night could seriously hurt the European Union's long-term economic hopes.
Mr Lamy (56) had been one of the most fervent backers of the trade negotiations, begun at the end of 2001 in the Qatari capital of Doha.
"I wouldn't say the Doha round is dead, but it certainly needs intensive care," the Frenchman said at a news conference.
"This is not only a severe blow for the World Trade Organization, but also a lost opportunity for all of us, developed and developing countries alike. We would all have gained. We all lose," Mr Lamy said. He also called for a radical restructuring of the 146-member WTO, describing it as "medieval".
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European Trade Commissioner Mr Pascal Lamy
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The 15 members of the EU, expanding to 25 next year, had hoped that market openings offered by successful negotiations would boost their economies, which have tended to limp along behind the United States.
The meeting of trade ministers in the Mexican resort of Cancun was a halfway stop along the road of the Doha talks, which aimed to finish at the end of 2004.
After days of acrimonious discussions on demands by poor nations that rich countries slash farm subsidies, the meeting finally foundered when African and Asian states refused to consider new rules on cutting the bureaucracy and backhanders that hurt trade.
This and three other sets of new rules, on foreign investment, competition and the award of government contracts, had been among a top priority for Mr Lamy and many EU members.
After encountering opposition to the plan from developing countries, Mr Lamy won permission from the 15 EU governments to drop demands on investment and competition. But that was not good enough for many poor states.
The failure of talks have led some diplomats to question whether the usually sure-footed Mr Lamy had misjudged the mood and offered his concessions too late to make a difference.