GENEVA, Dec 2 (Reuters) - Proposals to eliminate tariffs in certain industrial sectors remain the most difficult issue in talks on freeing up commerce in industrial goods in a new global trade deal, the chairman of the talks said on Tuesday.
But Switzerland's ambassador to the World Trade Organisation (WTO), Luzius Wasescha, who mediates the industry talks, said he was confident he could resolve most other issues ahead of a meeting of trade ministers expected later this month.
"I wouldn't qualify it as a dealbreaker, but it's a serious difficult question which has to be put on the adequate track," Wasescha, referring to sector deals, told a briefing after the WTO's 153 members met to review the industry negotiations.
Leaders of the G20 rich and emerging countries called last month for ministers to reach an outline deal in the core areas of agriculture and industrial goods by the end of this year.
A framework deal in the WTO's seven-year-old Doha trade round to open markets in food, manufactured goods and services, would boost business confidence and help counter the financial crisis, they believe.
Wasescha said the sectoral proposal is so sensitive that it was certain to be left to ministers to decide.
Another tricky issue is balancing the needs of the poorest developing countries who enjoy preferential access to rich nations such as the United States and European Union members with those of other developing country exporters who want barriers to those markets to come down further.
Some countries such as South Africa and Argentina have specific problems which they want accommodated in any deal, and ministers may have to decide that too, he said.
"All other aspects I'm very optimistic to solve them together with the members," Wasescha said.
AGRICULTURE
Wasescha said he expected to issue a revised negotiating text to serve as a blueprint for ministers by the end of the week. But as this must be discussed further with members, it could take until the weekend, a couple of days after a similar draft expected for agriculture.
WTO members would then review the text early next week.
"If I get a balanced degree of dissatisfaction I will be able to say that I was successful," he said.
Wasescha said sectoral proposals could prove a stumbling block for ministers later this month, just as a meeting of ministers in July collapsed over a proposal to safeguard farmers in poor countries from a surge in imports.
The industry talks aim to cut tariffs across manufactured goods, with various exceptions for developing countries.
But beyond that the United States and other exporters are also keen to open markets in specific sectors such as textiles or chemicals by getting major emerging countries such as China and Brazil to sign up to voluntary deals that drive duties down to zero or close to it. (Reporting by Jonathan Lynn; Editing by Ralph Boulton)