London: US and European Union negotiators are inchingtowards a deal that could restart stalled world trade talks but any agreementis contingent to reciprocal concessions by India and Brazil on loweringbarriers to trade in industrial goods and services which are still undernegotiation, a leading financial daily reported yesterday (Jan 22, 2007).  

Brazil has been negotiating separately with the US and EU and dispatched a seniordiplomat to Delhi over the weekend to try to broker a common position ahead ofthe World Economic Forum meeting in Davos, Switzerland.

The progress follows a meeting of high-level officials that finished at theweekend and constant cabinet-level contact between Washingtonand Brussels inthe run up to the Davos meeting this week, 'The Financial Times' reportedquoting officials.

A UStrade official said the Swiss forum would allow for important meetings to takeplace but would not produce any public statement on a 'breakthrough'.

But there was sufficient expectation that fresh political impetus would emergefrom the forum that the G-20 group of developing nations was mobilising to holdmultilateral talks next week in Geneva,the report said.

The proposed outline of an agreement between the world's two largest tradingblocs includes politically explosive concessions that are already causing riftsin Europe and alarm in the USfarm lobby, the report said.

The fragile deal that is starting to emerge has yet to be finalised and comesamid tremendous uncertainty about whether negotiators can get the politicalbacking to achieve a breakthrough in the Doha round of trade talks.