UPDATE 1-Brazil and U.S. see Doha deal possible in 2010

BRASILIA, Sept 17 - Brazil and the United States believe world trade negotiators could reach an agreement in the Doha talks by 2010, Brazil's foreign minister and the U.S. trade representative said on Thursday.

After meeting with U.S. trade representative Ron Kirk in the Brazilian capital, Foreign Minister Celso Amorim also said Brazil still wanted a negotiated settlement to a cotton dispute between the two nations.

Kirk's visit follows a World Trade Organization decision last month that set out terms for Brazil to retaliate against the United States in a long-running dispute over U.S. cotton subsidies.

Amorim has said Brazil is working on a list of U.S. goods it could hit with sanctions. Kirk said progress was being made in global trade talks and that there was political will to push through a deal.

Asked whether the busy U.S. domestic political agenda was an obstacle to pushing the Doha round, he said that was a "red herring".

As a major farm goods exporter with an economy that is increasingly influential on the world stage, Brazil has played a key role in the World Trade Organization's Doha round, trying to forge a common front with other developing nations.