EU trade chief: Breakthrough at WTO summit "not possible"
(AP)
Updated: 2005-12-12 13:37

EU Trade Commissioner Peter Mandelson said Monday a breakthrough agreement at a World Trade Organization ministerial meeting was "not possible," and that members should instead focus on making enough progress in Hong Kong to set up a framework deal in early 2006.

The so-called "Doha Round" of trade talks has reached an impasse over agricultural trade, with developing nations saying that offers by the European Union, U.S. and other wealthy nations to reduce their trade barriers are inadequate.

Members were aiming to reach a framework deal in Hong Kong on specific formulas for cutting farm tariffs and subsidies, but Mandelson said reaching a consensus during the six-day WTO meeting, which starts Tuesday, was "not possible, there's simply too little on the table to negotiate about in Hong Kong."

Instead, he said the 149-member body should shoot for agreement "within a reasonable period next year," hopefully within the first quarter.

Some trade ministers have suggested that the WTO hold another summit early in 2006 so that negotiators can hammer out a final treaty by the year's end.

The WTO's members are under pressure to wrap up the Doha Round _ named for the Qatari capital where it was launched in 2001 _ by early 2007 before the United States' "fast-track" trade approval process expires later that year.

Mandelson said his objective for the Hong Kong meeting was "to find the common ground on the building blocks in the main negotiating areas" of agriculture, services and manufacturing trade.

"We've got to set real deadlines at Hong Kong," Mandelson said.

He reiterated that the EU would not make a new offer on agricultural trade beyond the average 46 percent cut in farm tariffs it offered in October until it sees movement from other parties on reducing barriers on services and manufactured goods.

Mandelson _ who is under pressure from EU member states, particularly France, not to make any more concessions on farm aid _ said he would be receptive to counteroffers on non-farm trade areas from developing nations, led by India and Brazil.

"If they do so, and they help to move our agenda forward, I will work with them," he said.

Mandelson also said the fixation on agricultural matters was blocking progress in other aspects of the negotiations.

"By being so preoccupied with agriculture for so long to the exclusion of other negotiations, the other areas of the round, we haven't made the progress," he said.