Trade Minister Mark Vaile said there was a growing political commitment to pursuing success in the Doha round of trade talks, which have been stumbling on agricultural trade as the European Union resists pressure to offer deeper cuts in its farm tariffs.

"One of the key elements to success in Hong Kong is going to be ensuring that the developing countries are confident their interests are being looked after as well as the interests of the wealthy nations," Vaile told reporters.

"If we can do that, that should create a much better environment."

Vaile said a stand-off had developed between the European Union and the G-10 group of nations, with the EU reluctant to deepen farm cuts until developed countries like Brazil and India offer more market access on goods and services.

Over the weekend, Brazil and India promised new concessions in goods and services if an acceptable deal was reached in agriculture.

But EU officials said neither country had backed up its words with a new offer.

"It's a cart-before-the-horse issue - who's going to move first? The reality is both need to move," Vaile said.

"Both need to be forthcoming in terms of offering up more flexibility in those couple of key areas."

He added: "If we can achieve that in Hong Kong then that, in my view, would allow the whole process to move a step forward and put us in a much better position to move into 2006 and try and conclude the negotiations."

Vaile said an agreement by the World Trade Organisation on Tuesday to enshrine a two-year-old temporary deal on cheaper drugs for poor countries in a treaty would build the confidence of the developing countries ahead of the Hong Kong meeting.

-Nampa-Reuters

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