The European Union on Tuesday said India and the US need to compromise on their stands and bridge differences as a face off between them could cost the World Trade Organisation negotiators a deal for opening the world market.

The compromise should come from "both sides who are involved," EU Trade Commissioner Peter Mandelson said on his arrival at the WTO headquarters here this morning.

"The US and India, and other developing countries too. . . if they do not stretch a bit further -- if they do not demonstrate the will to compromise on this, then I am afraid the deal will go down, it is as appalling a prospect as that," he said as ministers gathered for another round of intensive negotiations to find convergence on cutting industrial tariffs and farm subsidies for a Doha deal.

The WTO Ministerial for a global trade agreement entered the second week here with the glimmer of hope of achieving a breakthrough in the talks.

However, the chances of a deal were dimmed by the face off between US and India and China on Monday over the contentious issue of the use of a safeguard mechanism to check import surges.

Mandelson said the deal can happen if the warring nations compromise and 'solve the issue.'

"If the parties do not want to compromise, then there will be no chance for the rest of us to try and bridge the gap," he said.

• India and the WTO: News & Issues