Poorer nations in trade talks vow

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Developing countries will stand their ground on key issues during forthcoming world trade talks, Brazil's foreign minister has said.

Celso Amorim challenged the US to give "real" cuts in the levels of subsidies paid to farmers in the battle to break the deadlock on trade talks.

The G20 group of developing nations has been meeting in Geneva ahead of global talks in Germany next week.

The group reiterated that agriculture was key to any agreement.

"We all know that we are in a negotiating phase but we don't want to sacrifice basic positions just for a speedy result, Mr Amorim said.

'Crucial' talks

Developing nations say that the subsidies artificially force down prices of agricultural products, making it harder for poorer countries to sell their farm goods overseas.

The US said in 2005 that it would cap farmer subsidies at $22bn but Brazil and India argue that the payments need to be at least half of this level and Indian trade minister Kamal Nath said that the US had "to deliver".

However the called-for limit on subsidies was "unrealistic", said David Salmonsen of the American Farm Bureau Federation.

The Doha round of world trade talks has foundered since beginning in 2001 amid high hopes of a global trade deal that would boost the global economy and help millions escape from poverty.

As well as cutting subsidies, the US and EU are under pressure to reduce customs duties they charge on imports of agricultural products.

In return, developing nations are supposed to open their markets up to industrial goods and services from the rest of the world.

The G20 countries will meet with the US and the EU in Potsdam for what have been described as "crucial" talks.