G20 nations agree on reforming WTO: European officials

By Scott Squires and Caroline Stauffer

BUENOS AIRES (Reuters) - European officials said that G20 nations had agreed to commit to reforming the World Trade Organization in a preliminary draft of the communique due to be released at the end of a two-day meeting of the bloc on Saturday.

An EU official said the language currently being negotiated for the communique said leaders support reforms needed to improve the WTO.

The language on multilateral trade had been a sticking point for the United States, which insisted the communique say the multilateral trading system was not working, the official added.

"We reiterate that trade is beneficial for utility, innovation, growth and employment, and we reiterate that the multilateral trading system is the framework in which we are all working and committed," the official said.

"But for the U.S. to acknowledge that, they had to get something in return, which was to say that this multilateral trading system does not work anymore, and does not meet the challenges that it has to meet," the official added.

The officials also said the wording on climate change was "a little bit more than the status quo but not backtracking" and the language around steel was kept to a minimum so leaders could reach an agreement.

Regarding migration, the language would also be kept to a minimum.

"It's a disappointment and we'll not hide our disappointment. But at least we have it," the official said.

The communique still needs final endorsement from member nations.

(Reporting by Caroline Stauffer and Scott Squires; writing by Cassandra Garrison; Editing by Daniel Flynn and Ross Colvin)