EU to resist more opening up of agricultural markets

The European Union (EU) will not give in to pressure to go further in opening European agricultural markets, Peter Mandelson, EU trade commissioner, insisted yesterday ahead of crucial ministerial talks in London and Geneva that could make or break the Doha global trade negotiations.

Brussels' tough stance will disappoint the US and agricultural exporting nations, which say the EU must improve its current offer if the faltering Doha negotiations are to move forward.

Mr Mandelson was holding talks in London last night with ministers from the US, Brazil, India and Japan at the start of a last-ditch bid to narrow differences ahead of next month's World Trade Organisation (WTO) conference in Hong Kong.

The conference, attended by all 148 WTO members, is due to approve a detailed blueprint for completing the round in 2006. More ministers will join the talks when they shift to Geneva today.

Mr Mandelson told EU foreign ministers in Brussels that the EU offer on farm tariffs had injected more realism into the Doha talks and said the need now was to broaden the focus to industrial tariffs and services, where the EU is looking for counter-offers from emerging economies such as Brazil and India.

"I expect to be pressed hard for more on agriculture market access. This I will not give," he said. "We have to make progress on all fronts simultaneously and with similar levels of ambition."

Trade negotiators say privately they believe the EU does have much "wiggle room" to improve its agricultural market access offer but acknowledge Brussels will need to show worthwhile gains in other areas to persuade France and its allies to give more ground on farm trade.

Shoichi Nakagawa, Japan's agriculture minister, said Japan could be willing to make further concessions in agriculture if there was progress elsewhere in the Doha talks.

Mr Nakagawa said he had strict instructions from Japan's prime minister, Junichiro Koizumi, to play a constructive role in the negotiations.

"We are ready to talk," he said, suggesting that Japan would be flexible.

While agriculture remained a highly sensitive issue, Japan would look to see what gains elsewhere might justify further moves on farm trade.

However, further progress would only be possible if negotiators begin actively to tackle other topics such as industrial tariffs and development initiatives.

Separately, Rob Portman, US trade representative, and Bo Xilai, China's commerce minister, are today expected to unveil a deal curbing Chinese textile exports to the US over the next three years. - (Financial Times Service)