Brussels - The President of the European Commission, Mr Jacques Santer, yesterday warned Turkey that if it officially sanctioned a trade boycott against Italy it would be in breach of trade agreements with the EU and could face retaliation, Patrick Smyth reports. If it could be shown that the state or state-controlled companies were boycotting Italian goods in protest at Rome's refusal to deport the Kurdish guerrilla, Mr Abdullah Ocalan, the EU could seek arbitration under the terms of the agreements, and failing that apply retaliatory measures, Mr Santer said. Meanwhile, AFP reported that Turkey had dropped its insistence that Mr Ocalan be extradited.