(BRDO PRI KRANJU) - US and EU leaders were set to call Tuesday for a breakthrough "in the next few weeks" on a new world trade deal.

US President George W. Bush and European Union chiefs want "a prompt, ambitious and balanced outcome" to the torturous Doha round of World Trade Organisation (WTO) talks, according to a joint statement to be released at the end of Tuesday's EU-US summit.

"We call on all WTO members to make meaningful contributions that are necessary to advance the negotiations, achieve a breakthrough on modalities in the next few weeks, and conclude an agreement as a matter of urgency," adds the draft statement, obtained by AFP.

The Doha round, aimed at reducing global trade barriers and spurring development, was launched in the Qatari capital in November 2001 with the objective of reaching a deal by 2004.

But the round has foundered ever since, mainly over disputes between developed and developing countries on agricultural subsidies and industrial tariffs.

WTO chief Pascal Lamy has made it clear he would like to see Doha wrapped up before Bush leaves office in January 2009.

However ahead of the summit with the US a European official said there was little point in rushing to meet a deadline in January if there were no worthwhile deal to be agreed.

In Geneva on Monday officials from several WTO nations began working towards a ministerial meeting there around the end of the month where attempts will be made to thrash out the main modalities or outlines -- of a deal.

EU Trade Commissioner Peter Mandelson, himself keen to get a deal quickly, and US Trade Representative Susan Schwab were also in Brdo Pri Kranju, near Ljubljana, for the summit.

The Doha negotiations have run aground in conflicts between developing and developed countries, with the former pressing for an end to farm subsidies in rich nations.

Developing nations also want greater access to markets in rich countries for their agricultural products.

In return, industrialised countries are demanding a better deal for their manufactured goods on developing markets.

Despite the urgency at the EU-US summit, the WTO's chief negotiator on freeing up access for industrial products, Don Stephenson, said last week he saw no point in further talks until member states were ready to compromise over tariffs and other key sticking points.

Mandelson has warned that if Doha does not succeed, "we will all pay a much higher price for this failure in the long term."

Elsewhere in the summit joint statement, the EU and US promised to take "appropriate individual and collective steps to address economic risks and restore investor confidence," amid international financial woes.

The measures would involve "strengthening prudential oversight, improving risk and liquidity management, enhancing transparency and fostering international cooperation between supervisors and central banks."

EU – USA Summit

Text and Picture Copyright 2008 AFP. All other Copyright 2008 EUbusiness Ltd. All rights reserved. This material is intended solely for personal use. Any other reproduction, publication or redistribution of this material without the written agreement of the copyright owner is strictly forbidden and any breach of copyright will be considered actionable.