``We're moving closer and I think that we'll achieve agreement on the agricultural scope hopefully before we get to Seattle,'' Vaile told Reuters. Vaile will hold talks by telephone with European Trade Commissioner, Pascal Lamy later on Friday. ``I am quite confident that we'll achieve agreement'' with the European Union, he said. ``There may be a couple of elements of it still in brackets, but I think a lot of the core issues we will have some agreement on it.''

Australia, which leads the 15-strong Cairns Group of farming nations, is keen to eliminate all trade-distorting agricultural subsidies. But World Trade Organisation envoys, struggling for months to finalise the agenda for global trade talks, have become bogged down in disagreement between the group's 134 members onwhich issues should be included in the new round.

The European Union, backed by Japan, South Korea, Norway and Switzerland, opposes a full-scale drive against subsidies. On the other side are the 15-nation Cairns Group of farm exporting states, led by Australia, and the United States.

The Europeans -- backed by Japan, Switzerland, South Korea and Norway -- argue that agricultural goods cannot be treated like industrial products because farming has a ``multi-functional'' role in modern society.

That role includes protecting the environment, maintaining food security and preserving rural life -- an argument the US and Cairns Group say is protectionism in another guise.

The United States and the Cairns Group earlier on Friday reached an agreement on the wording for agriculture talks to be discussed at the WTO ministerial talks in Seattle from November 30 to December 3. ``It's significant progress,'' Vaile said. ``You have got two of the three major groups agreeing on a text and that will put a bit ofpressure on the EU.''

The text relating to agriculture is likely to include the elimination of export subsidies, big reductions in domestic support and the widening of market access. Australia and the United States have not been easy allies in recent trade discussions, falling out over issues such as US lamb import quotas and the level of subsidies awarded by Washington to American farmers.

Australia and New Zealand have challenged US import restrictions in the WTO, and hope for a decision to reverse restrictions by the end of the year. Vaile has said the wider issue of agricultural trade deregulation would take precedence over bilateral disputes.