July 29 (Bloomberg) -- Trade talks aimed at producing a deal that would add billions of dollars to the world economy collapsed in their ninth day as rich and poor nations refused to make market-opening concessions and accused each other of intransigence, according to a trade negotiator.

The negotiator declined to be named as the failure of the effort has yet to be officially announced.

Asked if talks had failed, Peter Power, a spokesman for European Trade Commissioner Peter Mandelson, said, ``It's a massive blow to confidence in the global economy.''

The World Trade Organization's Geneva meeting was the last chance to strike a deal on cutting tariffs and subsidies in agriculture and manufactured goods before the U.S. presidential election in November. WTO Director-General Pascal Lamy has said there is no ``Plan B.''

Speaking after the initial reports that the talks had failed, Susan Schwab, the top U.S. official at the meeting said the effort had taken a ``very disappointing'' turn. Schwab said it wasn't ``her position'' to say if the talks were over and walked away without answering any more questions.

Progress in the Geneva negotiations ground to a halt yesterday as the U.S. accused China and India of refusing to open their fast-growing markets to foreign competition and snubbing a compromise on agriculture and industrial goods. One of the main sticking points is the trigger for special safeguards, which would enable developing countries to raise agricultural tariffs to protect their farmers in case of a surge in imports.

`Bad Sign'

``It's a very bad sign to give at this time to the world economy,'' said Shada Islam, a trade expert at the European Policy Centre in Brussels in a telephone interview today. ``People had been looking to the WTO for a sign of confidence at this very critical time in the world economy.''

Lamy's decision to call the summit was a gamble aimed at pressing key governments in the 153-member WTO to bridge divisions in a short period. He told negotiators last month that without an accord on agriculture and industrial goods by the end of July, the chances for a successful conclusion to the trade round are less than 50 percent.

India and China refused to accept key elements of a compromise put forth by Lamy four days ago and refined by ministers over the weekend, according to the United States. India never endorsed the proposal and China was ``backtracking,'' Schwab said.

Negotiators from China and India both rejected that characterization.

To contact the reporter on this story: Jennifer M. Freedman in Geneva at jfreedman@bloomberg.net

Last Updated: July 29, 2008 13:16 EDT