The United States and the European Union said on December 17 in Washington that they hoped to launch a new round of global trade talks next year, but Washington warned that negotiations would fail if the EU refused to back down on agriculture and other issues.

Two weeks after World Trade Organization (WTO) talks collapsed in Seattle, the United States and the EU issued a joint statement calling for a new trade round and for greater cooperation between the world's two largest trading powers.

But US Trade Representative Charlene Barshefsky dispelled any hopes that a compromise was near, saying it would be impossible to launch a new round if Europe refused to overhaul its trade agenda.

"If Europe stays with its proposals from Seattle, a round will simply not launch. This is going to be a considerable challenge," Barshefsky told reporters, after talks at the White House between US President Bill Clinton and the EU delegation, led by European Commission President Romano Prodi and Finnish President Martti Ahtisaari.

Following the one-day summit, US and EU officials conceded that they had made little progress in settling disputes over farm subsidies, food safety and other critical trade issues. Washington and Brussels clashed over an EU law to limit aircraft noise, prompting the United States to threaten the Europeans with retaliation.

But US and EU negotiators held out newfound hope for reaching agreements next year on banana import rules, and set a March deadline to settle a dispute over data privacy.

"It's a very strong beginning," said US Under Secretary of State Alan Larson.