Developing countries, angered by lack of progress in global talks on freer farm trade, could take retaliatory measures against protectionist rich countries if the impasse continues, South American analysts and oilseed industry leaders said Wednesday.

Noting the failure to meet a March 31 deadline for an outline accord, they signalled that a so-called peace clause, under which countries agreed not to challenge each others' farm subsidies, is due to expire at the end of 2003.

"Some countries are likely to take countervailing measures and file complaints with the World Trade Organisation (WTO), " Luiz Felipe Lampreia, chairman of the Brazilian Center for Foreign Relations (CEBRI), told a world oilseed crushers' conference.

He said that Brazil and other developing countries have been marking time before attacking various US and EU trade distorting farm subsidies through the WTO's dispute process.

But Lampreia, who was Brazil's foreign minister from 1995 to 2001, added, "It would be a step towards the law of the jungle in agriculture and noone wants that."

Brazil, a top exporter of soy, coffee, sugar and other farm products, sees the liberalisation of agricultural markets as vital to promote economic growth and social welfare.

Strong support came from neighboring South American oilseed industry leaders.

"Every country has the right to struggle for fair and ever-increasing revenues for its farmers, and the immoderate use of trade-distorting instruments only generates a loss of revenues ... for the farmers in our region," said Raul Padilla, President of the Argentine Vegetable Oils Industry Chamber (CIARA).

Padilla, who is also president and chief executive of Bunge Argentina SA, told oilseed industry leaders from more than 30 countries that Mercosur, would forcefully defend its right to export value added oilseed products.