* Domestic U.S. agenda won't slow trade talks, USTR says
* Political will growing among nations for a deal
* Brazil prefers negotiated settlement on U.S. cotton spat (Recasts, adds quotes, detail, byline)
By Raymond Colitt
BRASILIA, Sept 17 (Reuters) - The U.S. trade representative said on Thursday there was growing political will among nations to reach a global trade deal by 2010 and shot down complaints that Washington's domestic agenda is getting in the way.
Some European diplomats privately voice concern that the Obama administration is more committed to its domestic agenda priorities, such as healthcare reform, than pushing ahead with the Doha round of trade talks.
U.S. Trade Representative Ron Kirk, visiting the Brazilian capital, said domestic politics in the United States was no more of a challenge than in any other country and was not distracting American attention from the trade talks.
"As for the domestic political environment in the United States, I frankly think that is a red herring," Kirk told reporters after meeting with Brazil's Foreign Minister Celso Amorim.
Kirk said elections in India and Japan and the appointment of new trade ministers there have helped change the scenario.
"These things take time; they are horribly complex. I believe we are making progress because the political will is beginning to change to say: let's get it done," said Kirk.
Amorim, who played a key role in the Doha round until talks collapsed in mid-2008, agreed there was renewed momentum.
"The political will of the principle actors is present. There is the will to engage," Amorim said of the negotiations that resumed at a technical level in Geneva this week.
COTTON SUBSIDIES
The United States welcomed Brazil's offer to discuss an ongoing dispute over U.S. cotton subsidies but would wait until the next move by the South American country, Kirk said.
"We would very much welcome the opportunity to have a negotiated settlement on that," he said.
Kirk's visit follows a World Trade Organization decision last month that set out terms for Brazil to retaliate against the United States in a long-running dispute over U.S. cotton subsidies.
"But we understand that the next step in this process ... Brazil has to do some very technical work to decide what, if any, countermeasures it chooses to impose ... We'll wait and see what comes from their next decision," he added.
Amorim said Brazil still wanted a negotiated settlement
"We're deciding how to react in case these negotiations don't produce results and in case U.S. policies don't change," he said, adding that there were no immediate plans for talks.
Amorim had previously said Brazil is working on a list of U.S. goods it could hit with sanctions.
As a major farm goods exporter with an economy that is increasingly influential on the world stage, Brazil has played a key role in the World Trade Organization's Doha round, trying to forge a common front with other developing nations. (Editing by Brian Ellsworth and Anthony Boadle)