By Jonathan Lynn
GENEVA (Reuters) - Talks to salvage a global trade dealfaced a crunch point on Thursday after three days of scantprogress, as ministers went into another emergency meeting withdeveloping giant India saying it had nothing new to offer.
Rich and poor nations remain at loggerheads as to who mustmake the next move. Officials said it would be clear onThursday whether it was worth pursuing the long-delayed WorldTrade Organisation talks.
"What I see is big divergences still. We'll see during theday if it is possible to bridge these gaps," Argentina's chiefnegotiator Nestor Stancanelli said as he arrived at WTOheadquarters on the shores of Lake Geneva.
The United States and European Union say it is up to bigemerging countries like India, China and Brazil to respond totheir offers on opening up their agriculture markets.
But the emerging countries say Washington and Brussels arestill not doing enough to help poor farmers in the Doha roundof free trade talks which are supposed to promote development.
"The negotiations are locked but the key for unlocking themis in the hands of the emerging economies," Adolfo Urso,Italy's most senior trade official, told Reuters.
"NOTHING TO GIVE"
Ministers from seven key WTO members -- Australia, Brazil,China, the European Union, India, Japan and the United States-- were meeting counterparts from other countries on Thursday.
"Let's see what more we can do. I'm very clear what wecannot do. I cannot negotiate livelihood security of Indianfarmers," Indian Commerce Minister Kamal Nath said earlier.
"There is nothing which I have in my pocket to give," hesaid, adding he wanted more cuts to a U.S. farm subsidyceiling.
U.S. President George W. Bush and Indian Prime MinisterManmohan Singh discussed the need for trade powers tocontribute to a breakthrough in the Doha talks, the White Housesaid.
On Tuesday, the United States sought to get the talksmoving by announcing it would slash its limit fortrade-distorting farm subsidies to $15 billion (7.5 billionpounds). But Brazil immediately pointed out that was doublecurrent actual spending.
Nath had scant comfort for "high-cost" U.S. and Europeanbusinesses lobbying for a deal to stop developing nationscarving out entire industrial sectors from market opening.
"In a globalising world where competitiveness is at theheart of globalisation, if you're non-competitive you can'tseek refuge under an agreement of the WTO," Nath said.
"The future is that cars are not going to be made inStuttgart or Detroit -- they're going to be made in Asia."
SARKOZY CONCERN
The Doha talks came under renewed attack from FrenchPresident Nicolas Sarkozy, worried about cutting EU farmtariffs for little return. He said he could not sign a dealbased on the current state of the negotiations.
Those comments drew a rebuke from EU partner Germany, theworld's biggest exporter which has hoped a WTO would boost itsfamous car, chemical and other exporters.
"One comes away with the impression that France does notwant to see a positive conclusion," said a German official."There are different points of view between Germany and France.Germany is going to keep battling for a successful conclusion."
Business lobbyists expressed concern that a failure of thetalks could encourage protectionist sentiment and block tradegrowth in a troubled world economy.
Japan's exports unexpectedly shrank in June for the firsttime in nearly five years, data showed on Thursday.
"From talking to negotiators it's clear there's quite a lotof stuff in the back pocket -- we need to find a way of teasingit out," said Gary Campkin, head of the international group ofthe British employers' federation CBI.
"It's frustrating for business to know ... the deal, ifpeople put their minds to it, is doable," he said.
The talks were originally due to run until Saturday butdelegates say they are likely to either flop before thenbecause of the deep differences or drag on well into next week.
(Additional reporting by Laura MacInnis, Robin Pomeroy andWilliam Schomberg in Geneva, and Gernot Heller in Berlin;editing by Mary Gabriel)
