SAO PAULO, March 10: Brazilian and US trade negotiators said on Saturday they believed they could make progress in the stalled Doha round of global trade talks but warned that the window would not stay open for long.

President George W. Bush, on a six-day tour of Latin America, said the US "is fully prepared to reduce agricultural subsidies" -- softening on a key issue that had halted the talks in mid-2006.

"We just want to make sure there is market access for our products," Bush said.

Foreign minister Celso Amorim said Brazil was ready to talk about removing obstacles into its industrial sector.

"If this is what it takes to get greater market access, we're willing to talk about it," Amorim told a news conference in Brazil's financial capital Sao Paulo after a meeting with US Trade Representative Susan Schwab.

"I have a feeling there is some progress in the talks."

Schwab said Brazil had a critical role to play in trying to reach a pact to free up trade across the globe.

"I am cautiously optimistic that we will reach a breakthrough and a success," she said.

But she added: "If we fail to get a breakthrough in this window, we risk the Doha round."

Bush said in Uruguay on Saturday he had spoken with President Tabare Vazquez about advancing the Doha round and that he was optimistic a deal could be reached.

The World Trade Organization talks on lowering barriers and opening trade were halted in July after members failed to agree on proposals to free up farm trade. The talks were re-launched last month.

Brazil, as a leader of the G20 group of developing nations, has had a key role in fighting for a cut in tariffs and subsidies in the agriculture sector of rich countries.

For a deal to be possible, developing nations want the US to make bigger farm subsidy cuts and the European Union to go further in cutting agricultural import tariffs.

In return, developing states would have to open their markets to industrial goods and services, the rich countries say.

Schwab and Amorim met one day after Bush's visit to Brazil that featured trade issues prominently.

Brazilian President Luiz Inacio Lula da Silva said on Friday he was optimistic the Doha round could reach success, while Bush said much work still needed to be done.

Bush said whatever agreements were reached between Brazil and the US, other countries must also make concessions.

Amorim and Schwab said there was no official deadline but the Brazilians saw April or May as the window for a breakthrough. The US negotiator gave it "several months."

"It's necessary to keep up the interest, otherwise people will move onto other things," Amorim said.—Reuters