As a key session of ambassadors to the World Trade Organisation (WTO) was put off for the third time and a new draft text of a declaration for the ministers failed to appear, speculation soared that the round might not happen. "The situation is not looking good at all," said an official close to the three months of negotiations on what the declaration - a blueprint for the round - should include.

"At this stage, I wouldn't put any money on the ministers being able to sort this mess out in just four days." The trade ministers are due to gather in Seattle on November 30 and were due to issue the declaration on December 3, setting out the agenda for a "Millennium Round" of negotiations on lowering further barriers to trade in goods and services.

But major differences on agriculture, on the extentof talks on lowering tariffs on industrial goods, and on whether developing countries can be allowed further time to implement accords reached in the last round, have blocked agreement.

Another issue still to be firmly tackled is the demand by the United States, formulated less combatively by the European Union, that discussions be started in the WTO on how far labour conditions for workers should be part of the body's rules. This is fiercely rejected by developing countries.

As a meeting of ambassadors from the 135 WTO member states set for early on Tuesday - having been postponed twice on Monday - was rescheduled for the afternoon (1400 GMT), envoys from key farm produce exporters met in urgent session.

This alliance, the 15-nation Cairns Group led by Australia, is demanding that the new round have a firm target for the elimination of all subsidies to farmers that are aimed at increasing production. The demand is firmly opposed by the European Union, Japan, South Korea, Switzerland and Norway.

Theyargue that farming cannot be treated like industry because it is intimately linked to non-trade concerns like the environment, rural traditions and food security - or ensuring a nation has enough to eat from its own resources in emergencies.

Some Cairns Group members - including Argentina and Uruguay - have indicated they will not accept a round unless there is some give from the EU, still a big subsidiser of its farmers.

Twice in the past, in 1982 and 1990, Latin American countries walked out of talks either aimed at launching a new round or concluding one, delaying accord for several years.

Some trade envoys, including negotiators involved in the farming stand-off, say they are still optimistic that the ministers might carve out a deal - "although it's going to give another meaning to 'sleepless in Seattle'," one said.