* WTO 1st qtr stock-taking to depend on new draft texts
* Doha talks edge forward despite differences
* Developing countries blame U.S. for lack of progress
By Jonathan Lynn
GENEVA, Dec 3 (Reuters) - A review early next year on whether a deal in the Doha round is possible in 2010 -- the main outcome of this week's World Trade Organisation conference -- is the next milestone in the eight-year-old trade talks.
Negotiations on the Doha round were not even on the agenda of the meeting, which WTO Director-General Pascal Lamy had set out to keep free of drama.
The low-key gathering, contrasting with the riots and conference-room crises that dogged previous WTO meetings, led some anti-globalisation activists to proclaim Doha was dead.
Many economists and trade policy wonks argued the WTO should update the Doha agenda to tackle issues such as climate change and food security, and reform its work style to serve developing countries better.
Recognition that the WTO's global trading rules may have prevented the world from lapsing into 1930s-style protectionism in the heat of the financial crisis has also bolstered support for a new trade deal.
Lamy and the trade ministers he summoned insist that the complex Doha negotiations about opening and regulating trade in 20 areas -- from agriculture and manufactured goods to services and fisheries -- are edging forward.
The value of mutually advantageous trade has become clearer as recovery from the crisis takes off, said Chilean Finance Minister Andres Velasco, who chaired the Geneva conference.
"There is much strength in members' desires to move forward and I would dare say the importance that we all attach to the fruits of trade opening has been much enhanced by the events of the past 18 months," he said.
Lamy said it was striking that developing countries, while insisting an agreement must be development-friendly, were now the most vociferous campaigners for a Doha deal.
"What has changed is that there is more on the table and the system has more value," he said.
POINTED CONTRAST
Developing countries, particularly the advanced emerging economies, hold rich countries and especially the United States responsible for the lack of progress.
A group of 22 developing countries signed their own deal on Wednesday to cut tariffs and boost South-South trade in pointed contrast to the lack of visible Doha progress.
"It's a very unusual situation that we are in that the developing countries are the ones pushing for liberalisation and the developed countries are the ones resisting it," said Egypt's Trade Minister Rachid Mohamed Rachid.
Rachid is one of several ministers from emerging countries who say the problem is they do not know what Washington actually wants.
That impression is reinforced by the fact that the Obama administration has other political priorities right now and is not ready to take on the trade-sceptic constituency in the United States.
"You do have to sell the benefits of trade, that's true, but when you're trying to sell the benefits of a healthcare scheme it becomes harder to do the other one at the same time," said Australian Trade Minister, Simon Crean.
U.S. Trade Representative Ron Kirk says Washington has focused in the past half-year on trying to change the terms of a debate that was going nowhere.
The United States has confronted other members who insist the talks must proceed on the basis of existing draft texts, arguing that by definition such drafts are incomplete, and also pushed for one-on-one talks to clarify positions outside of the WTO's multilateral negotiating format.
The United States also wants big emerging economies such as China, India and Brazil -- where most future growth is likely -- to open their markets for both rich and developing countries.
"If we really want to deliver on the promise of Doha we have to be willing to open ourselves to moving beyond our comfort zones in order to close this deal," Kirk said.
It is clear the stock-taking exercise next March or so will conclude that the 2010 goal set by political leaders is not possible unless the chairmen of the negotiations are able to issue updated version of those draft texts filling in more gaps.
That will require a big dose of political will from the WTO's 153 member governments to advance the negotiations in Geneva and clinch a final deal.
For now, no one is ready to make a decisive move because they believe the others are not ready, a classic negotiating impasse, said Indonesian Trade Minister Mari Pangestu.
That will change once trade moves up the U.S. agenda, which could happen as soon as Thursday's White House jobs forum.
Kirk said people took the consumer benefits of trade for granted, leaving the debate open to those who questioned its impact on the environment, labour standards and jobs. It was critical to show how trade led to job creation too.
"When we can draw a link between export creation and job growth at home, that's a good thing," Kirk said. (Editing by Andrew Dobbie) ((jonathan.lynn@reuters.com; +41 22 733 3831; Reuters Messaging: jonathan.lynn.reuters.com@reuters.net ))