By Robin Pomeroy and Doug Palmer
GENEVA (Reuters) - India welcomed on Wednesday an offer bythe United States to limit its disputed farm subsidies as partof efforts to save a global trade deal but immediately cameunder pressure from Washington to make concessions itself.
More than 30 trade ministers are pressing for abreakthrough in the World Trade Organisation's seven-year Dohanegotiations.
"The first thing which we must take note of and mustappreciate is that the United States is moving," IndianCommerce Minister Kamal Nath told reporters.
Washington had to cut subsidies more deeply but its move onTuesday showed the deadlock was easing, Nath said, soundingmore upbeat than hours earlier when he said the U.S. offer was"wholly inadequate."
"Up to now there was no movement. The fact that movementhas started is a good thing," Nath told reporters.
U.S officials said they were disappointed that Nath did notrespond to their subsidy offer by indicating new willingness tocut tariffs on manufactured goods which they argue would alsohelp other developing countries access India's vast market.
"We hope Nath is just reading from old talking points. Ifthe emerging markets don't contribute it will not truly be adevelopment round," said U.S. spokeswoman Gretchen Hamel.
Under Doha, developing countries are supposed to benefitfrom a scaling back of subsidies and import tariffs thatprotect farmers in the United States and Europe.
But the biggest emerging economies like India and China arebeing asked to open their markets too, from farm products toindustrial 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 on Wednesdayin a new format of small groups of negotiators focusing onspecific deadlock issues.
Rich countries were hoping for signs that the bigdeveloping economies were ready to be flexible on industrialgoods.
Unless the talks collapse, they could extend beyond theoriginal end date of Saturday and well into next week as WTOboss Pascal Lamy pressed for a breakthrough, officials said.
"He is using marathon running tactics," said Adolfo Urso,Italy's top trade official, referring to Lamy's passion forlong-distance running.
"But we won't tire. We will be right there behind him. Whatis important is that for the first time we are negotiating onindustrial goods," Urso told reporters.
Without a breakthrough on farm and industrial goods by theAugust summer break, the round risks being put on hold possiblyfor a couple of years due to November's U.S. presidentialelection, the 2009 White House changeover and other factors.
The United States on Tuesday offered to captrade-distorting farm subsidies at $15 billion (7.5 billionpounds), lower than the level in seven of the last 10 years andthe existing $48.2 billion ceiling.
But the proposed limit is above the approximately $7billion paid to U.S. farmers last year, an amount that wasrelatively small due to high commodity prices.
Developing countries complain that rich country subsidiessqueeze their farmers out of the market, reducing local foodproduction and leaving them vulnerable to food price spikes.
(Additional reporting by Jonathan Lynn, Laura MacInnis andWilliam Schomberg; Writing by Robin Pomeroy and WilliamSchomberg; Editing by Janet Lawrence)
