JERUSALEM, Feb 24 (Reuters) - After months of delay, Israel and the Palestinians set up teams of government experts on Sunday to try to jumpstart U.S.-backed peace talks that critics say have yet to make progress.

The teams will focus on a range of specific issues, from security to trade and water use, that would form part of any agreement on a Palestinian state, said Israel's Foreign Ministry spokesman, Arye Mekel.

Israel's chief negotiator, Foreign Minister Tzipi Livni, and her Palestinian counterpart, former prime minister Ahmed Qurie, will continue to deal with the so-called core issues of borders, and the future of Jerusalem and Palestinian refugees.

The negotiations, which U.S. President George W. Bush hopes will yield an agreement on Palestinian statehood before he leaves office next January, have been stalled by a series of disputes, including over Jewish settlement activity near Jerusalem.

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