26 June 2004	Saturday	07 Jamadi-ul-Awwal 1425

NEW DELHI, June 25: World Trade Organization chief Supachai Panitchpakdi said on Friday he saw a new flexibility among member countries, giving hope that a framework agreement could be reached next month on reviving global free-trade negotiations.

Mr Supachai was speaking after talks with the new left-leaning government of India.

"The signs we have been receiving is that all the countries could not yet agree on convergence. They have been giving different options. They are trying to be flexible and that gives me good hope," Mr Supachai told reporters when asked if the July deadline would be met.

Liberalization talks broke down in September at a ministerial-level meeting in Cancun, Mexico, mainly over the issue of farm subsidies. WTO members then gave themselves by the end of July to reach a framework on resuming the talks.

"I would say at the moment negotiations are still going on with the hope that we still have a good opportunity to narrow down the differences," the WTO chief said.

"I have tried to emphasise to the ministers that we need to map out a work programme until July 2004 carefully because we need to have this package by the end of July," he added.

If a framework agreement is reached, it would provide the negotiating framework for pressing ahead with the Doha round of trade negotiations, named after a 2001 meeting in the Qatari capital, to conclude as scheduled by the end of the year.

Representatives from nearly 30 WTO countries met in Paris last month to work towards the framework agreement.

Indian Commerce Minister Kamal Nath said the attempt to reach a framework agreement by next month depended on resolving farm sector issues to everybody's satisfaction.

"The effort is to reach a WTO framework agreement by July-end. This is our target and all the members efforts are that this materializes but this would only be possible if a fair deal is reached on the farm sector," Mr Nath said.

The main sticking point remains the pace at which rich countries abolish politically sensitive subsidies to farmers to export. Developing nations contend that such assistance depresses world prices and makes it impossible for their farmers to compete.

Mr Nath said the issue of farm subsidies must be given the same weight during negotiations as rich nations' calls for more access to the agriculture markets of developing nations.

The European Union in May offered to eliminate EU agricultural export subsidies on condition that the United States, Canada and Australia take similar steps.-AFP