Draft U.N. arms trade treaty full of holes, activists say

* Countries could vote on Friday on arms trade treaty

* Global weapons market valued at more than $60 billion

* Month-long U.N. talks plagued by procedural bickering

UNITED NATIONS, July 24 (Reuters) - The first draft of a

U.N. treaty to regulate the $60 billion global arms trade was

slammed on Tuesday by activists as having "more holes than a

leaky bucket" as negotiators scramble to reach a consensus by

Friday.

One person every minute dies from armed violence around the

world, and arms control activists say a convention is needed to

prevent illicitly traded guns from pouring into conflict zones

and fueling wars and atrocities. Conflicts in Syria and

elsewhere show a treaty is necessary, they add.

"Our concern with this text is that at the moment it has

more holes than a leaky bucket," Anna Macdonald, head of arms

control at Oxfam, told reporters. "And if these holes are not

closed we won't end up with a treaty that saves lives."

After losing the first week of the month-long negotiations

to procedural wrangling, delegations from around the world now

only have three days left to work on the delayed draft text

before a possible vote. The treaty must be approved unanimously,

so any one country can effectively veto a deal.

But if a consensus cannot be reached, the treaty may not be

doomed. Activists have said nations supporting a stronger pact

could then bring a treaty to the 193-nation U.N. General

Assembly and adopt it with a two-thirds majority vote.

"The text that leaves this conference must not be the text

with these loopholes. It's got to be a decent text even if it

goes back to the General Assembly," said Brian Wood, arms

control and human rights manager at Amnesty International.

The draft treaty currently says that it would only come into

effect after it has been ratified by 65 countries, which some

activists say could take up to 10 years. Arms control

campaigners say only 30 ratifications should be needed.

"Every major element ... has major loopholes," said Peter

Herby, head of the International Committee for the Red Cross

arms unit. "There is a very high risk this treaty will simply

ratify the status quo, rather than changing the status quo."

"Rather than producing the highest possible international

standards for the transfer of all conventional weapons, it would

allow many countries to simply continue doing what they're

doing," Herby said.

"BUSINESS AS USUAL"

While most U.N. member states favor a strong treaty,

activists said they were at times being drowned out in

negotiations by objections and disruptions from a minority of

states including Syria, North Korea, Iran, Egypt and Algeria.

There are divisions on key issues, such as whether human

rights should be a mandatory criterion for determining whether

governments should permit weapons exports to specific countries.

Herby said the draft references to humanitarian law were

"unlikely to make a great deal of difference in practice."

Macdonald listed several criticisms. He said the range of

weapons in the draft treaty needed to be expanded, particularly

to include ammunition; the rules governing risk assessments that

countries must do before authorizing an arms sale needed to be

tightened; and the whole treaty needed to be broadened to cover

the entire global arms trade and not just illicit transactions.

The Conflict Awareness Project said that when it came to

regulating arms brokers the draft treaty was "so weak and

watered down it will give comfort to illicit gun runners."

"The feeble treaty language means business as usual for

traffickers who are filling the arsenals of the world's worst

human rights abusers," said Kathi Lynn Austin of the Conflict

Awareness Project.

The negotiations on the treaty in New York were delayed for

the first week by a dispute over Palestinian participation,

which was eventually resolved by allowing the delegation to sit

at the front of the negotiating hall but without the right to

participate as states with voting rights.

Such procedural bickering was typical of the arms trade

talks, diplomats say, as countries that would prefer not to have

a strong treaty tried to prevent the negotiations from moving

forward. In February, preparatory talks on the rules nearly

collapsed due to procedural wrangling and other disagreements.

One of the reasons this month's negotiations are taking

place is that the United States, the world's biggest arms trader

accounting for over 40 percent of global conventional arms

transfers, reversed U.S. policy on the issue after Barack Obama

became president and decided in 2009 to support a treaty.

But U.S. officials say Washington insisted in February on

having the ability to "veto a weak treaty" during this month's

talks, if necessary. It also seeks to protect U.S. domestic

rights to bear arms -- a sensitive issue in the United States.

The other five top arms suppliers are Britain, China,

France, Germany and Russia.