Negotiations between the U.S. and the European Union have triggered hopes to rescue the stalled talks on global trade liberalization. Peter Mandelson, EU trade commissioner in high level talks with US official is likely to escalate pressure on U.S. to agree in principle to radical cuts in its farm subsidies. Therefore, a deal can only be truck on the stalled Doha round of world trade talks if the U.S. agrees on the proposed terms. Mandelson will held talks with his American counterpart, Susan Schwab to warn that if the U.S. fails to undertake reforms of the U.S. agriculture support system in next three months time would be resulted in the crumple of the Doha round. In this circumstance, if the deal would not be struck any revival of global trade talks will not be possible before 2010. The EU is mounting pressure on the U.S. to cut its subsidies by only $5 billion to $15 billion demanded by the developing countries led by India and Brazil. On the other hand, it is widely believed that Democrat controlled U.S. Congress will be less protectionist on farm subsidies and they would give preference to multilateral global deals. In the meanwhile, the U.S. has said that the technical and policy level conversation and they are working in this direction to find a resolution to the impasse. They further said they have already made progress on the technical side and modestly mentioned that they are contemplating to make an improved offer on cutting agricultural subsidies.