India warms to U.S. offer to help save WTO talks

By Robin Pomeroy and Doug Palmer

GENEVA (Reuters) - India welcomed on Wednesday an offer by the United States to limit its disputed farm subsidies as part of efforts to save a global trade deal but immediately came under pressure from Washington to make concessions itself.

Talks were taking place late into the night on Wednesday as more than 30 trade ministers press for a breakthrough in the World Trade Organisation's seven-year Doha negotiation.

"The first thing which we must take note of and must appreciate is that the United States is moving," Indian Commerce Minister Kamal Nath told reporters.

Washington had to cut subsidies more deeply but its move on Tuesday showed the deadlock was easing, Nath said, sounding more upbeat than hours earlier when he said the U.S. offer was "wholly inadequate."

"Up to now there was no movement. The fact that movement has started is a good thing," Nath told reporters.

U.S officials said they were disappointed that Nath did not respond to their subsidy offer by indicating new willingness to cut tariffs on manufactured goods which they argue would also help other developing countries access India's vast market.

"We hope Nath is just reading from old talking points. If the emerging markets don't contribute it will not truly be a development round," said U.S. spokeswoman Gretchen Hamel.

Under Doha, developing countries are supposed to benefit from a scaling back of subsidies and import tariffs that protect farmers in the United States and Europe.

But the biggest emerging economies like India and China are being asked to open their markets too, from farm products to industrial goods such as cars and chemicals.

SMALLER HUDDLES

Seven key WTO players -- the United States, the EU, Japan, China, India, Brazil and Australia -- were meeting late into the night on Wednesday in a new format of small groups of negotiators focusing on specific deadlock issues.

Australian Trade Minister Simon Crean, taking a break from the talks shortly before 10:30 p.m. (4:30 p.m. EDT), said he was hoping progress could be made in a potentially all-night session of negotiations.

"I am coming back so I can work through the night," he told reporters. "It's a very good sign."

Indian Commerce Minister Kamal Nath said the meeting would resume at 1 a.m. (7 p.m. EDT).

Rich countries were hoping for signs that the big developing economies were ready to be flexible on industrial goods.