WASHINGTON, Feb 19 (Reuters) - High agricultural commodity prices could help set the stage this year for a new world trade agreement after more than six years of talks, a top Bush administration official said on Tuesday.

"It's a good time, not only in the U.S., but I'd venture to say it's a good time for farmers in many countries. This should be a time when we all come together to do a deal," U.S. Commerce Secretary Carlos Gutierrez told Reuters in an interview.

U.S. farm exports, buoyed by strong demand that has pushed prices higher, are projected at a record $91 billion in 2008, compared to about $51 billion when the Doha round of world trade talks started in late 2001.

The U.S. Agriculture Department also forecasts net U.S. farm income to hit a record $92.3 billion in 2008, compared to about $68 billion when the Doha round began with one goal of helping lift poor countries out of poverty through trade.

"In general, 2008 is projected to be an exceptional year for U.S. crop producers, particularly of feed crops, oil seeds and food grains," USDA said in a recent report.

The department also projected cattle and dairy prices to "remain well above their average over the last 10 years."

Despite the upbeat farm picture, Gutierrez said the United States could only agree to a deal if other countries also do their part to cut farm subsidies and tariffs.

MORE OPTIMISM

But reflecting comments other U.S. officials have made, Gutierrez said there was now more optimism about the Doha round than there was "a couple of months ago."

High international prices for farm goods are "clearly one of the areas that has helped," Gutierrez said.

In the best-case scenario, trade ministers would agree in late March or early April on the basic outlines of a deal to open markets in agriculture, manufacturing and services and flesh out the details over the next six or so months.

Gutierrez refused to say if the United States eventually would have to give ground on an issue important to many other countries in the Doha negotiations.

That involves a procedure known as "zeroing," which the United States uses to calculate anti-dumping duties on imports it believes are priced unfairly low.

Critics say the practice leads to unfairly high U.S. duties and want it banned as part of a new world deal.

But pressed by lawmakers who opposed any weakening of U.S. anti-dumping laws, the Bush administration has tried to preserve the practice in the Doha round.

"We ... will continue making our case (in support of zeroing). We believe we have a valid case," Gutierrez said.

(Editing by Sandra Maler)

Reuters

Tuesday February 19 2008

 By Doug Palmer

Source: www.guardian.co.uk