In talks that began late Thursday and spilled over to yesterday morning, key negotiators were able to agree on a text that addressed both the demands of the poor countries and also the concerns raised by the United States and Japan, an Indian official said, requesting anonymity because an official announcement was due later.

According to the draft, rich countries as well as leading developing countries like Brazil, India and China will provide duty-free access on "a lasting basis," he said.

"I think it's acceptable to all developed and developing countries," Indonesian Trade Minister Mari Elka Pangestu told reporters.

The draft text now must be finalised and then adopted formally by the trade body to become effective.

The LDC text, which Indian negotiators have termed "comfortable", is expected to be made final tomorrow.

The EU trade chief Peter Mandelson said he was "hopeful that an agreement would be reached."

Among the 149 WTO members, 32 fall into the category of least developed, with per capital incomes of less than $750.

The agreement came after negotiators from least developed countries dropped their demand that all of their products should be allowed duty-free access, the Indian official said.

In return, negotiators from the US and Japan agreed to limit the exemptions to a fixed percent that will be worked out later. Such exemptions would be transitory and would end by a set date, he said.

According to the draft text of the agreement, developing economies like India, Brazil and China will allowed more flexibility than the rich nations.

The issue of duty-free and quota-free access is a key component of the current Doha round of trade talks that were launched in Qatar's capital in 2001 particularly to address the concerns of poor nations, which say they had lost out in previous WTO negotiations.

US SHIFTS POSITION
The US has shifted its position to reconsider Bangladesh's textile on duty-free list, reports UNB in Dhaka. Earlier, the US had voiced reluctance to give duty-free access to the country's textile products.

In the face of intense lobbying by Bangladesh and other LDCs, the US trade negotiators shifted their position on the fourth day of WTO talks and decided to reconsider its stance.

The US made it clear on Thursday that the development package will cover select products and select countries with Bangladesh and Cambodia out of it due to their competitiveness in textiles.

"They've shifted their position... They're going to treat Bangladesh like any other countries," Commerce Minister Altaf Hossain Choudhury told the news agency over phone from Hong Kong yesterday.

He said this quoting US Deputy Trade Representative Peter Allegier, who addressed a briefing of Bangladesh media now in Hong Kong.

"We had a very hard meeting with the US administration today (Friday)," the Bangladesh delegation leader said, adding, "We'll continue to press for it."

Peter Allegier exclusively met Bangladesh media on the sidelines of the meet and said the US would provide duty-free access to all LDCs, but would exclude some products which are sensitive for the US.

"The US is yet to decide which items to be included and which ones to be kept aside," he was quoted to have told the briefing.

BGMEA MOVE
Meanwhile, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) convened a meeting of five Commerce Ministers from Bangladesh, Cambodia, Sri Lanka, Nepal and Lao on the sidelines to mobilise opinion so that no decision goes against the LDCs' interest.

BGMEA at the meeting proposed to form a 15-member group with 14 LDC members of the WTO who have been left out of the US trade concession that offered to many African and Caribbean countries.

"Sri Lanka would join the group," former BGMEA president Annisul Haque, who is also member of the Bangladesh delegation, told the news agency. "All the ministers agreed with the proposal."

Representatives from major buyers, including JC Penny, Wall Mart, Nike, Target, American Apparel Association, American Retailer Association, and BGMEA lobbyist from the US were present.

Annis was also trying to hold another meeting of all the members of the proposed group today. He was devising a protest plan for today to address Bangladesh's concerns over textile issue.