Brazilian President Luiz Inacio Lula da Silva warned on Thursday the Doha round of global trade talks will remain stalled if developed countries keep their high farm subsidies.

"There will be no business" with developing countries like Brazil and the Doha round will remain unaccomplished if the subsidies stay, Lula said at a gathering with agricultural businessmen.

He said trade officials from the European Union (EU) and the United States tried to convince Brazil and India to cut trade tariffs at a meeting last week as a condition to take further steps towards goals set by the World Trade Organization (WTO) for the Doha round.

Top trade officials from the United States, the EU, Brazil and India met in Potsdam, Germany earlier this month to try to break the deadlock over the Doha round.

Developing countries and rich nations are mainly at odds over the degree of state support for the agricultural sector particularly in the EU and the United States.

Rich nations meanwhile are also looking for more concessions from developing countries to further liberalize their markets for industrial goods and services.

Lula said former British prime minister Tony Blair, who resigned on Wednesday, asked for a "more flexible position" from Brazil in a telephone conversation last week.

The president said he answered that there will be "no agreement" as negotiations on technical terms were over.

"Now it is a political decision," he said.

Source: Xinhua