UPDATE 1-EU-U.S. businesses: Doha needs sector breakthrough

(Adds details, background)

By Darren Ennis

BRUSSELS, Nov 20 (Reuters) - European and U.S. business leaders said on Thursday deals scrapping tariffs in individual industrial sectors would increase the chance of a successful conclusion to the World Trade Organisation's Doha round.

"A breakthrough on sectoral tariff agreements by the G20 ... would go a substantial distance toward facilitating the conclusion of the Doha round," BusinessEurope and the U.S. National Association of Manufacturers said in a letter to the EU and U.S. trade chiefs.

"In order for modalities to offer the promise of substantial market openings to the world, however, there will need to be additional reductions in tariff and non-tariff barriers by the advanced emerging countries like China, Brazil, and India," the letter, obtained by Reuters, said.

The leaders of the Group of 20 rich and emerging nations pledged last Saturday to reach an outline agreement in the Doha round by the end of the year. The talks, launched seven years ago to open up world trade, stalled in July after ministers failed to hammer out a deal.

"We believe that the global economy would benefit significantly from a near-term successful conclusion of the Doha round," the letter said.

"However, the unresolved issues in the Doha round are complex ... one way to reduce the number of outstanding issues and reach accord on modalities would be an ambitious outcome in negotiations on the sectoral tariff agreements."