run commodity cartels, another key demand. the u.s., brazil and india, joined by many other wto members, have said repeatedly that success in hong kong hinged on agreement on eliminating farm export subsidies. their tough line has left the e.u. isolated on the issue. but delegates said that e.u. budget deal clinched in brussels on early saturday may allow the bloc)s negotiators to adopt a more flexible line on farm concessions in hong kong. lamy)s draft agreement on a package of zero-duty and quota-free access for exports from all least-developed states will allow countries to exclude a limited percentage of tariff lines for a transitional period. this is in response to washington)s reluctance to give total tariff-free entry to textiles from bangladesh, given the competitiveness of the products. japan wants similar exclusions for rice and leather exported by least-developed states. a separate deal for african cotton exporters said export subsidies in the sector would be eliminated by developed countries in 2006 and 'trade distorting domestic subsidies for cotton production will be more quickly and ambitiously reduced'. however, cotton exporters would be given free access to markets in developed countries. the text urged governments to 'achieve a higher level of liberalization of trade in services,' a key demand by the e.u. and the u.s. however, acknowledging poor countries) opposition to a too-rapid opening up of their markets to foreign service providers, the text noted there would be 'appropriate flexibility for individual developing countries', it said. provisions were also included to further reduce tariffs for industrial products although the cuts in duties were not as deep as the e.u. and the u.s. wanted. the current talks are being held within the context of the doha round of wto talks, which were launched in 2001 in qatar. wto chief lamy aims to clinch a final global trade accord at the end of 2006. --spa 00:05 local time 21:05 gmt nnnn
