DUBAI, United Arab Emirates (AP) — Finance ministers from the big industrialised nations said yesterday a global economic recovery was underway, but they urged a “speedy resumption” of stalled trade talks and domestic reforms that will further help the expansion.

Ministers from the G7 countries wrapped up a meeting here with a statement saying higher growth was needed in both rich and poor countries, after the two sides found themselves badly divided once again as World Trade Organisation talks collapsed a week earlier in the Mexican resort of Cancun.

G7 ministers expressed disappointment at the failure of those talks but said they believed “the immediate blockages can be removed” and an agreement can be reached.

“Promoting growth and job creation is the single best way we can help developing countries,” US Treasury Secretary John Snow told a news conference.

Poorer countries also meeting in Dubai yesterday responded that the rich nations had only themselves to blame, accusing the rich West of a “lack of political will” to face down its powerful farm lobbies over subsidies.

“This is the result of the unwillingness of major advanced economies to remove barriers to agricultural imports and subsidies to their farm producers,” the developing world’s Group of 24 said in a statement.

Finance ministers and central bank governors of the G7 nations agreed on what they called an “agenda for growth” that includes specific reforms for each nation.

For example, Germany said it would reform its labour market and pension system, Italy will seek pension reforms, France will reform its public sector and health system as the United States pursues tort reform.

The ministers sought currency exchange rates that are better dictated by economic fundamentals, an apparent urging for China to let the value of its yuan appreciate as its trade surplus also rises. China has responded cooly to such suggestions and made no commitments.

Despite the many challenges that loom, G7 ministers agreed that the global economy is showing real signs of improvement.

“Equity markets have rebounded, confidence has increased, financial conditions have improved, oil prices are expected to remain stable and inflation is under control,” they said in a communiqué.

At a one-on-one session, Snow and his British counterpart, Gordon Brown, expressed disappointment at the breakdown of global talks to free up more trade, according to a senior US official.

“It’s also disappointing for the developing countries, because for the growth they wish to see, trade will be absolutely crucial,” Brown told reporters later.

The G7 ministers had a packed agenda that also included the fight against terror financing.

Washington also was looking on the sidelines for help in raising money for rebuilding Iraq, although major commitments were not due until donors meet next month in Spain.

The ministers discussed reconstruction aid for the Palestinian territories with Palestinian Finance Minister Salam Fayad, praising his efforts to weed out corruption and agreeing to “review prospects for increased financial assistance in the short term”.

Last night, the ministers invited their counterparts from Algeria, Bahrain, China, Egypt, India, Indonesia, Kuwait, Malaysia, Morocco, Pakistan, The Philippines, Russia, Saudi Arabia and the host, United Arab Emirates, to a private dinner to press for redoubled efforts at choking off terror financing.

Snow has been leaning on Europe and Japan to carry more of the weight in pushing the global economy forward. The IMF outlook released last Thursday predicts US growth reaching 3.9 per cent next year, far ahead of Japan and Europe.

The IMF’s executive board formally approved a new US$12.5 billion loan programme with Argentina yesterday.

The G7 includes Canada, France, Germany, Italy, Japan, Britain and the United States, with Russia invited to some sessions. The World Bank/IMF meetings, involving 184 countries, are being held Tuesday and Wednesday.