Brazil signals tough talks ahead to save WTO deal

Brazil signalled tough talks ahead to save a global trade deal, saying last-ditch compromise proposals leaned too heavily in favour of rich countries.

Brazilian Foreign Minister Celso Amorim also criticised the US for saying it would not discuss the kind of cuts to US farm subsidies that many poor countries are seeking.

Mr Amorim was speaking a day after World Trade Organisation (WTO) mediators floated compromises in a bid to rescue the WTO's struggling Doha round of negotiations for a global trade deal.

The round was launched shortly after the 2001 attacks on the US in a bid to restore confidence in the world economy and show developing countries that they could fight poverty with trade. But the talks remain mired in problems and risk being put on hold for several more years if a deal cannot be reached soon.

"I think the texts have defects," Mr Amorim told reporters in Brussels after meeting EU Trade Commissioner Peter Mandelson in his first comments on the compromise proposals.

"I think they are more ambitious on (industrial goods) than they are on agriculture," he said.

"I want a good round, one that really constrains rich countries paying subsidies, with real opening of their markets but which respects our limits in the industrial area." Brazil and other developing countries are seeking to bring down barriers in rich countries to their farm exports. But they are concerned about opening up their markets too much to imports of industrial goods such as cars or chemicals in which the EU and the United States are more powerful.

The WTO compromise texts included detailed ranges of cuts to farm subsidies and import tariffs for countries around the world, including a proposed range of between $13 and16.4 billion for a ceiling on annual US farm subsidies.

Brazil and other developing countries are seeking a ceiling of $12 billion. But a US government official said earlier that cutting US farm subsidies to $13 billion a year was "unacceptable". "If it's true, there won't be much negotiating," Mr Amorim said, when asked about the US official's comment.

"It's a shame if they said that ... If the US, the world's biggest economy doesn't want a deal, there won't be a deal."

WTO countries are due to discuss the new negotiating proposals next week in Geneva.

Mr Mandelson issued a statement after his meeting with Mr Amorim saying it had been "useful."

"It ended positively and we have both agreed to work constructively in Geneva in the coming week of talks in the light of the chairs' negotiating texts," Mr Mandelson said.