Doha trade talks unlikely to reach agreement this weekend

Ministers trying to thrash out a crucial interim deal in the Doha global trade round yesterday dampened hopes of an agreement this weekend, with little sign that key players were ready to make the difficult concessions required.

The European Union yesterday went further than before in signalling its willingness to make bigger cuts in farm tariffs, provided the US improved its offer to reduce domestic farm subsidies and larger developing countries agreed to lower tariffs on industrial goods.

"The EU is prepared, if the circumstances are right, significantly to improve our offer in agricultural market access, moving towards, and close to, what the G20 have asked for," Peter Mandelson, EU trade commissioner, said. Irish farm interests were concerned at plans by representatives of the US, the EU and Japan to hold another meeting last night ahead of official talks at the World Trade Organisation today.

A member of the Irish delegation said Mr Mandelson was expressing the view that he had been given "flexibility" by the EU agriculture council in relation to the talks. "It changes the complexity of things and is raising concerns among our own delegation and those of France and Austria, whose position is similar to ours," he said.

Minister for Agriculture and Food Mary Coughlan said yesterday she was opposed to any further concession in agriculture. She said there was no justification for further movement by the EU. "The EU has already made a generous offer to reduce support and protection for agriculture. The latest EU offer was conditional on movement by others and there has been no such reciprocal move."

She said the EU was at the limit of its negotiating mandate.

The Group of 20 developing countries, led by Brazil, have proposed a 54 per cent average cut in farm tariffs by rich nations, about halfway between the EU and US proposals.

But diplomats said the Bush administration, under pressure from Congress, appeared to have little flexibility to move on the subsidies. "The real problem is US domestic support," said one senior trade official. "Unless the US moves on domestic support, there will not be a deal." - (Additional reporting: Financial Times service)