Nations harden stand before W.T.O. talks By Yoshita Singh & Satrajit Moitra

Geneva, July 22 (PTI) - India and 34 other nations took hard positions before they began W.T.O. talks for resolving differences over tariff reductions and subsidy cut to reach a Doha trade deal on which many pin hopes of a global economicrecovery.

The rich nations, represented by the U.S. and E.U. and the developing countries, spearheaded by India, Brazil and South Africa, blamed each other for stalling a multilateralagreement on opening the 28-trillion dollar world trade.

"14 years after the Uruguay round of talks was concluded, you (the developed countries) are still having subsidies in hundreds of billions of dollars. No actual reduction has taken place," India's Commerce Secretary Gopal Pillai said after his meeting with trade ministers of select G-33 grouping ofdeveloping countries.

Trade ministers from key W.T.O. members are participatingin round-the-clock negotiations.

U.S. Trade Representative Susan Schwab, did her part of tough posturing before she joined the 'greenroom' negotiations that are scheduled to run for five days with a hope ofpositive outcome.

"We are looking forward to seeing the contributions of others, including of the most significant emerging markets (toclinch a deal at this Geneva meet this week)," Schwab said.

She was supported by E.U. Trade Commissioner Peter Mandelson who said an agreement was now conditional ondeveloping countries making real cuts in industrial tariffs.

"They must be real... That is the political bottom line.

Nothing else will work for us. Nothing else will close thedeal," Mandelson said.

The world economy is projected to slow down to 4.1 percent in 2008 from 5 per cent last year.

The negotiations, launched in 2001 Round were to completeby the end of 2004 for a new trade regime.