India and 34 other nations took hard positions before they began WTO talks for resolving differences over tariff reductions and subsidy cut to reach a Doha trade deal on which many pin hopes of a global economic recovery.

The rich nations, represented by the US and EU and the developing countries, spearheaded by India, Brazil and South Africa, blamed each other for stalling a multilateral agreement 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 of developing countries.

"The flexibility if you like should be more than what is available for other sensitive products and the flexibility you find in NAMA. We will see how the negotiations go. There are no pre-conclusions yet. We will see how the negotiations go," said Indonesian Trade Minister Mari Elka Pangetsu.

G-33 nations led by Indonesia are asking for a cut in United States farm subsidies. Developing countries are waiting to see how much is US willing to do. After this, the developing economies will think about adjusting their stance on key negotiations. 

US 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 of positive outcome.

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

She was supported by EU Trade Commissioner Peter Mandelson who said an agreement was now conditional on developing 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 the deal," Mandelson said.

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

The negotiations, launched in 2001 Round were to complete by the end of 2004 for a new trade regime. (With Agency inputs)