A failure to reach agreement at the forthcoming World Trade Organisation meeting in Hong Kong would destroy the WTO's credibility and undermine the international trading system, according to John Tsang, the Hong Kong commerce secretary who will host the conference.

In an interview with the Financial Times on Monday, Mr Tsang said he was much more optimistic than he had been 10 days earlier because of the offers made last week by the US and others to cut agricultural subsidies, which could pave the way for progress in other areas.