MONTREAL - Trade and agriculture ministers said Wednesday they had made progress as they concluded three days of free trade talks but acknowledged that they have several mountains still to climb and limited time.
"We had focussed and frank political discussions," said Canadian Trade Minister Pierre Pettigrew, who chaired the meeting of representatives from 25 World Trade Organization members.
"My sense is that some defrosting is happening, but we are not yet at the sort of global-warming drive that will be needed," said European Union Trade Commissioner Pascal Lamy.
Other ministers were less optimistic.
"We have got a major problem. It's going to be tough," South African Trade Minister Alec Erwin told reporters as he left the meeting.
The Montreal gathering was called to try to smooth out differences between the WTO's 146 members before a major meeting in Cancun, Mexico, in six weeks. That meeting is a crucial staging point in negotiations on a global trade treaty that is supposed to be completed by the end of next year.
The biggest differences are over how to reduce barriers to international trade in agricultural goods. Exporting countries like the United States and Australia want to see big cuts in farm subsidies and import tariffs, but importers like the European Union and Japan are offering much smaller cuts, insisting they still need to give some protection to their domestic producers.
The European Union, which has just completed a major internal reform of its farm subsidy programs, told the meeting it would be prepared to cut its domestic support levels by 60 percent.
U.S. Trade Representative Robert Zoellick called that "a very important step ... but not an acceptable result."
However, he said, the European Union was moving more than other countries. On Japan's position he noted: "If there were flexibility, it escaped me."
The United States and the European Union have started private talks to try to solve some of the biggest issues in agriculture, but accept that anything they agree still has to be approved by all the other countries.
"The two main trading blocs have to lead by example ... but it takes 146 to tango," said EU Agriculture Commissioner Franz Fischler.
But, he added, the EU isn't prepared to make all the concessions and there must be moves from other countries as well.
Indian Information Technology and Communications minister Arun Shourie said he was happy with the EU-U.S. talks provided they are "transparent."
"We don't want to see any surprise, sudden draft texts," he said in an intreview.
India also is adamant that it won't accept the start of new negotiations in areas like investment rules and competition policy — areas that the European Union claim are vital.
"The important way to make Cancun successful is to focus on the existing agenda," Shourie said. He added that India has the support of China in its position on many areas.
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