The US is holding consultations with its domestic pharmaceutical industry before indicating any progress in talks on trade-related intellectual property rights and public health aimed at providing access to drugs for residents of countries without manufacturing capabilities.

"There is no change in the US stance at the moment, but they are trying to strike a bargain with their domestic pharmaceutical industry," a commerce ministry official, who held consultations with his US counterparts on various trade issues last week, said.

Officials, however, made it clear that India and developing countries were going to press ahead with their demands and were not willing to compromise to get the benefits promised by developed countries at the Doha ministerial meeting in November 2001.

Commerce ministry officials, however, said despite resistance from the US, a solution before the Cancun ministerial in September seemed possible.

World Trade Organisation members attending the mini-ministerial meeting in Sharm-El-Sheikh in Egypt over the weekend will try to put pressure on the US to soften its stance.

"A solution in Egypt, however, does not look possible at the moment," a commerce ministry official said.

African countries and developing countries like India, Brazil and South Africa have repeatedly demanded flexibility in the Trips agreement to do away with compulsory licensing provisions for poor countries without drug manufacturing capabilities, to help them fight epidemics.

A declaration to this effect was also made at the Doha ministerial meeting of WTO members. However, there has been no progress though the deadline of December 2002 has elapsed.

The US has, however, backtracked on its promise due to pressure from its domestic industry.

India, however, remains firm on its earlier demands on diseases covered. Officials said the coverage would not be restricted to tuberculosis, malaria, HIV and Aids, but should cover any other epidemic.

India also intends to retain flexibilities on compulsory licensing contained under Articles 30 and 31 of the Trips Agreement.

"We do not want the flexibilities available to us to be removed through any other agreement or declaration and we will ensure that it remains that way," an official said.