By Robin Pomeroy and Laura MacInnis
GENEVA (Reuters) - Troubled global trade talks showed signsof progress on Friday after crunch negotiations among seven keycountries, ministers and officials said.
In a sudden turnaround suggesting that a week of deadlockwas finally breaking, ministers began to talk of a possiblesuccess at the World Trade Organisation (WTO) talks.
"There has been progress made, yes," EU trade chief PeterMandelson told reporters.
Mandelson said progress had been made in most areas of thetalks, which are focusing on moves to open up trade inagriculture and industrial goods. Asked whether a final dealwas in reach, Mandelson replied: "It's possible, it'spossible."
WTO spokesman Keith Rockwell said new ideas to narrow gapsbetween rich and poor countries had emerged in five hours oftalks among the seven countries and would be passed to ameeting of ministers from 35 countries starting at 6 p.m. (5p.m. British time).
"There are some very encouraging signs of progress thathave emerged, some very interesting ideas," Rockwell toldreporters.
Earlier WTO Director-General Pascal Lamy had warned thatthe talks in the long-running Doha round risked collapsingtoday if members failed to narrow their differences, followinga day of intransigence on Thursday.
"This is the blunt reality ... The situation is critical,edging between success and failure," WTO chief Pascal Lamy tolddelegates at the talks, according to his spokesman. "Time isrunning out and the next 24 hours are crucial."
Trade ministers from around the world had made littleprogress since talks began on Monday aimed at saving the Doharound which seeks to liberalise trade by reducing importtariffs and trade distorting subsidies.
Mandelson had described Friday's meeting of ministers fromAustralia, Brazil, China, the EU, India, Japan and the UnitedStates as a chance for a final attempt to close the gaps.
Emerging economies like Brazil and India have criticisedthe United States and European Union for failing to offer bigenough cuts in subsidies and import tariffs which make itharder to compete with American and European farmers.
Washington and Brussels both say they have given ground inthe talks and are waiting for the developing countries to makeconcessions on opening their markets to imports of manufacturedgoods and services.
Indian Commerce Minister Kamal Nath frustrated other WTOnegotiators on Thursday when he said: "There is nothing which Ihave in my pocket to give."
SEARCH FOR COMMON GROUND
Lamy has circulated a paper to the seven major countriesoutlining possible compromises on all the main divisive issuesin farming and industry to find common ground, officials said.
Brazil showed a new willingness to accept that in any majorindustrial goods sector at least 10 to 30 percent of productswould be exposed to full tariff cuts, an official familiar withthe talks said.
European and U.S. manufacturers fear their countries willfurther cut their tariffs but they may not be able to export tothe likes of Brazil or India because such countries will beallowed to give some protection to certain key sectors.
The Geneva meeting is seen as a last chance to close theDoha round this year after which it could be delayed further byelections in the United States and India and a change in theEuropean Commission next year.
Lamy has said a successful deal would inject confidenceinto a global economy beset by soaring fuel and food prices andthe credit crunch, while failure could encourage protectionistsentiment and call into question the international community'sability to tackle problems like climate change.
(Additional reporting by Jonathan Lynn)
