"Diplomatically Europe is in a strong position," Mandelson told EU foreign ministers, in remarks made available by his office to journalists. "We are seen as the main champions of this multilateral process."

"What's interesting, at this stage, is that the EU is one of the least negatively talked about players, which is unusual, given how we were being targeted 18 months or so ago," he said.

The EU has long been criticised in WTO talks for not giving more ground on agriculture, but WTO negotiators made proposals last week focusing more on the need for concessions from the United States and developing countries.

The proposals tabled last week aimed at breathing new life into the Doha Development Round of trade liberalisation negotiations, launched in the Qatari capital in 2001, and brokering a compromise among the 150 WTO members.

The members are at odds over the extent of new reductions in barriers to trade in agriculture, industrial goods and services amid cross-cutting disagreements between rich and poor countries over cuts in import tariffs and farm subsidies.

Mandelson said that Europe should keep up the pressure on developing countries to cut their tariffs on industrial goods although he acknowledged they were unlikely to do so unless Washington cut farm subsidies.

"We need to continue to push hard on industrial tariffs. There is no reason to assume that the landing point will not move further in our favour," he said.

WTO representatives are to meet this week in negotiating groups in Geneva, Switzerland, to give their initial reactions to the proposals. After an August recess, the talks are to resume in early September.

'NEW WTO PROPOSALS

NEED MORE WORK'

Earlier report adds: The European Union's Portuguese presidency said Sunday that the latest WTO proposals for unblocking world trade talks were a "basis for discussion" but that more work was needed on them.

"There is a basis for discussion. Now we have to work again on the proposition," Portuguese Economy Minister Manuel Pinho told AFP, but added: "We are still far" from an agreement.

He was speaking after chairing talks of EU trade ministers at which EU Trade Commissioner Peter Mandelson briefed on developments in the Doha round of negotiations, ahead of fresh World Trade Organization talks this week.

Pinho would not be drawn on precisely what areas needed work, but he said "it is a quantitative negotiation, and each side must be ready to give ground in terms of quantity."

"There is also a problem of scope to resolve," he said after the working dinner in Brussels, without elaborating.

"We must be hopeful now but there is still plenty of work to do," he added.

Last week, WTO chief negotiators had called for sharp cuts in US support for farmers and in industrial import duties imposed by emerging nations, as the European Commission has frequently called for in the long-running talks.

Brussels said in a statement Tuesday that the proposals "represent a useful step forward" and that it would consult with member states before giving a "considered view" at the WTO.

Mandelson is also scheduled to brief EU foreign ministers on the proposals on Monday.

The proposals are aimed at ending nearly six years of deadlock in the Doha Development Round of trade liberalisation negotiations, launched in the Qatari capital in 2001, and brokering a compromise among the 150 WTO members.