EU internal wrangling may disrupt global trade talks

BRUSSELS, July 17 (Chinese media) -- As the world trading powers meet next week in Geneva to save the long-stalled Doha Round of global trade talks, a dispute within the European Union (EU), especially over farm subsidies, may disrupt the crucial bid.

The dispute has become a grave concern ahead of the final talks among EU economic ministers on Friday in Brussels to prepare for the Geneva meeting.

In a rare diplomatic occurrence last month, French President Nicolas Sarkozy openly accused EU Trade Commissioner Peter Mandelson, who represented the 27-nation bloc in the Doha talks, of offering too much in cutting EU farm subsidies before receiving reciprocal concessions from the rapidly developing countries.

The French president had even said Mandelson's weakness in the negotiations was to blame for Ireland's rejection of the EU's Lisbon Treaty.

Responding to the criticism, Mandelson told a press conference Thursday that it was not the first time in his career that he had been wrongly blamed.

The EU trade chief insisted there should be only one united position for the EU when he goes to Geneva for the crucial meeting next week even though different member states may have their own priorities.

"Of course there are different priorities and emphases among the member states," said Mandelson, "but when you arrive at a common trade policy, as we have, you do so in the knowledge that whatever the tensions, there is at the end of the day unity among the member states for the position that we have the responsibility for arguing and negotiating in Geneva."

The Geneva meeting, to be held on Monday and attended by around30 leading World Trade Organization (WTO) players, was billed as the last chance to make a breakthrough and conclude the Doha Round talks within this year.

Mandelson expected EU ministers to reaffirm a common strategy in the coming global bargaining.

"We have one mandate. We have been operating within it and will continue to do so. We have one set of negotiating directives from the member states. I do not envisage those changing," Mandelson said.

However, some analysts say the EU's negotiating power risks being undermined by the discontent from France, one of the EU's most protectionist countries which now holds the rotating EU presidency.

In theory, each of the 152 WTO members, including France, can block a deal on the Doha Round.

As Europe's biggest agricultural country as well as the largest beneficiary of EU farm subsidies, which amount to billions of euros every year, France has been reluctant to let the EU reduce the generous handouts to French farmers, which the expected global trade deal will necessarily require.

The WTO Doha Round trade talks, launched in the Qatari capital in late 2001 to slash farm subsidies, remove tariffs and other trade barriers so as to help reduce poverty and spur economic growth in developing countries, have repeatedly missed deadlines in the past seven years.

And the remaining disputes are not likely to be solved very easily without substantial compromises, especially from the developed countries, analysts say.

While the developing countries are urging rich nations to lower farm subsidies and open markets for their agriculture goods, the developed countries are demanding more market access for their industrial products.

At the same press conference with Mandelson, the EU's top farm official Mariann Fischer Boel warned that an agreement on farm subsidy cuts needs to be made this month or talks would likely be frozen for the foreseeable future.

"We intend to be constructive and engaged, but we will not accept a deal at any price," she warned.