Four key developed and developing trading partners failed on Friday to break a deadlock in world free trade talks, although they expressed confidence progress could be made soon.
Trade ministers from the European Union, the United States, Brazil and India, which represent a wide range of views in the 148-member World Trade Organisation (WTO), met in Paris as the clock ticks towards a December deadline.
"The positions are still far apart," said one diplomat from a leading developing country after 4 1/2 hours of talks. "There are some big problems," he added.
WTO ministers must approve a blueprint for a final deal in Hong Kong in three months time knowing that if they fail - as they did two years ago in Mexico - this could kill the Doha Round, which was launched in late 2001 to give a boost to the world economy, and poorer countries in particular.
US Trade Representative Rob Portman, flanked at a news conference by Brazilian Foreign Minister Celso Amorim, India's Trade Minister Kamal Nath and EU Trade Commissioner Peter Mandelson gave a positive verdict on the discussions. "I am more optimistic with the talks today that we will be able to bridge our differences," he said, adding that the ministers would meet again soon.
Mandelson was similarly upbeat: "We have made a significant contribution to bringing this round forward," he told reporters.
But no minister could point to agreements or understandings that had been reached on farm trade, which is widely seen as holding the key to the success of the trade liberalisation round which also includes industrial goods and services.
Brussels is under pressure to agree to open up its farm market by lowering tariffs, something which many member states, especially France, oppose without prior concessions from others.
At the same time, Brussels and other WTO members insist that the United States agree to reform its farm support programmes - something, which is not popular with the US Congress - because the EU has already begun slashing its state aid to farmers.
Ministers said that the EU had presented a series of "scenarios" for tariff cuts, using as a basis a framework put forward some months ago by the Brazil- and India-led G20 developing country alliance.
"At least they (the EU) have come out with something," said another developing country diplomat. "We are still waiting for the United States."
Portman acknowledged that domestic support, or subsidies, for US farmers is a tricky political issue, but reiterated that for concessions there, he needed the EU and others to offer a significant opening of their markets to US goods.
"We are working on it. We are making progress," Portman said.
Without progress in the farm issue, developing countries say that they are unwilling to negotiate away tariffs protecting their industries and services, as sought by developed nations.
On service industries such as tourism and telecommunications, the four agreed they would put together a small group of WTO states to take the lead on reaching a pact.
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