Reuters

GENEVA - Talks to salvage a global trade deal will limp into another day on Friday after ministers made minimal progress on Thursday in their bid to prevent the suspension of the World Trade Organization round.

"There is some progress... not nearly as much as we need," U.S. Trade Representative Susan Schwab told reporters after meeting ministers from other trade powers on the fourth day of emergency talks in Geneva.

"Some countries are stretching more than others and we will see tomorrow if everybody is prepared to do their share."

Indian Commerce Minister Kamal Nath said the negotiations were "inching" forwards. But EU Trade Commissioner Peter Mandelson, asked if there had been progress, said: "No."

Rich and poor nations remain at loggerheads as to who must make the next move to prevent a potentially long suspension of the Doha negotiations, once billed as a way to boost the global economy and fight poverty.

The talks were originally due to run until Saturday but delegates say they are likely to either flop before then because of the deep differences or drag on into next week.

The United States and the European Union say it is up to big emerging countries like India, China and Brazil to respond to their offers on opening up their agriculture markets.

But the emerging countries say Washington and Brussels are still not doing enough to help poor farmers in the Doha round of free trade talks which are supposed to promote development.

"The negotiations are locked but the key for unlocking them is in the hands of the emerging economies," Adolfo Urso, Italy's most senior trade official, told Reuters.

India's Nath said the United States had to go further than an offer made this week to cap its farm subsidies at $15 billion a year, roughly a third of the current ceiling but double actual payments last year.

Nath said the talks were "moving forward" in areas ranging from the capping of agricultural subsidies to proposed tariff treatment of manufactured goods.

U.S. President George W. Bush and Indian Prime Minister Manmohan Singh discussed the need for trade powers to contribute to a breakthrough in the Doha talks, the White House said.

Sarkozy concern

The Doha talks came under renewed attack from French President Nicolas Sarkozy, worried about cutting EU farm tariffs for little return for its exporters. He said he could not sign a deal based on the current state of the negotiations.

Those comments drew a rebuke from EU partner Germany, the world's biggest exporter which has hoped a WTO would boost its famous car, chemical and other exporters.

"One comes away with the impression that France does not want to see a positive conclusion," said a German official. "There are different points of view between Germany and France. Germany is going to keep battling for a successful conclusion."

Business lobbyists expressed concern that a failure of the talks could encourage protectionist sentiment and block trade growth in a troubled world economy.

Japan's exports unexpectedly shrank in June for the first time in nearly five years, data showed on Thursday.

"From talking to negotiators it's clear there's quite a lot of stuff in the back pocket -- we need to find a way of teasing it out," said Gary Campkin, head of the international group of the British employers' federation CBI.

"It's frustrating for business to know ... the deal, if people put their minds to it, is doable," he said.