The European Union offered a compromise deal to end a tussle over tariff cuts on farm imports today, lifting hopes for progress as ministers met in Paris to boost the flagging Doha free trade round negotiations.
The United States voiced optimism that differences could be narrowed in the row over how to calculate import duties on agricultural goods, clearing an obstacle in the way of further steps towards an accord that would lift global economic growth.
"Doha ... will boost jobs and prosperity and can help lift literally millions out of poverty if we do the right thing," new US Trade Representative Robert Portman said ahead of the talks between trade ministers from rich and poor nations.
"Agriculture is the engine to push these negotiations forward, and as I see it that engine needs a jump start."
The World Bank has calculated that conclusion of the round could boost global incomes by $500 billion a year, if it lowers trade barriers, particularly between developing countries.
The round, which should have been finished by 2004, but has been dogged by wrangling over subsidies and long-protected markets, reaches its next milestone when the ministers meet in Hong Kong in December.
A blueprint agreed last year set out broad principles for continuing work on areas including farm trade and industrial tariffs, but World Trade Organisation (WTO) states have just three months to sew up some key deals on the road to Hong Kong.
Negotiators are bogged down over how to slash rich state farm subsidies, give poor country producers a better deal, and open up markets across the globe for goods and services such as telecommunications and tourism.