Ten countries that are net importers of agricultural products insisted Monday on the right to protect key goods even as WTO talks on dismantling trade barriers appeared to be making headway.

At a meeting here, agriculture ministers from the so-called G10 said they were prepared to consider progressive reductions of import duties as long as certain "sensitive" products were exe-mpted.

An agreement on agriculture is a crucial step towards concluding the World Trade Organisation's Doha round of trade talks aimed at freeing up global trade.

The 147-member WTO hopes to reach an understanding by the end of July on a framework for galvanizing the round of talks that was launched in the Qatari capital in November 2001.

After meeting at WTO headquarters, the G10 asked that within the talks' framework, each country be able to set a percentage of products to which would be applied "sufficiently flexible" customs duties.

In the case of Japan, a G10 member, that would concern rice, on which

taxes of more than 500 percent currently apply.

In general, G10 ministers said they were talking about roughly one-third of all imports. south Korean farm and forestry minister Huh sang-Man said for his country around 100 products were concerned.

swiss Economy Minister Joseph Deiss, who presided over the meeting, said: "We have made additional steps. We are waiting for other steps from the other sides."

The Doha round has since ground to a near-halt, mainly due to disagreements on the elimination of trade-distorting agricultural export subsidies in rich countries.

Hopes for a breakthrough were raised earlier this year when the European Union said it was prepared to eliminate its agricultural export subsidies on condition that its trade partners -- notably the United states -- took similar steps to end official support for farm exports.

Emerging and developing countries maintain that such subsidies in the developed world depress prices and make it impossible for them to compete fairly on world markets.

WTO chief supachai Panit-chpakdi expressed cautious opti-

mism Monday in Berlin that a deal could be reached this month on the Doha round of talks.

"I am still quite guardedly optimistic in reaching this agreement" in July, Panitchpakdi told reporters after talks in Berlin with German Overseas Development Minister Heidemarie Wieczorek-Zeul.

"There are movements at the moment from all sides," he said.

Ministers from Australia, Brazil, the European Union, India and the United states will try saturday to jump-start the stalled talks in Paris, the WTO said.

Their discussions are to follow a meeting of high-level envoys in Geneva aimed at finding common ground on agricultural issues, Australia's WTO ambassador David spencer told AFP.

"They will try to move towards a common position on agriculture, then the ministers will meet," spencer said.