China, EU to continue WTO talks today

China, EU to continue WTO talks today
REUTERS

BEIJING, FEB 23: Chinese and European Union trade negotiations will hold a fourth day of talks tomorrow to overcome hurdles to Beijing's campaign to enter the World Trade Organisation, officials of both sides said.

``The talks have finished for today,'' said a Chinese ministry of foreign trade official who took part in the talks today, the third day of talks.

``They will continue tomorrow.''

Progress in today's talks was ``just so-so'', he said, but declined to elaborate. EU spokesman Anthony Gooch confirmed in Brussels that the talks would go into a fourth day.

EU trade commissioner Pascal Lamy, who has said he is ready to jump on a plane to Beijing at short notice if good progress is made, did not plan to fly to China on Wednesday, Gooch said.

The EU spokesman did not, however, rule out Lamy heading for Beijing later in the week. An EU source had yesterday said that after two days of talks the two sides were ``not within striking distance of a deal''.

The EU has not said what the stumbling blocks were, but a European businessman familiar with the talks said Brussels was holding out for concessions in insurance and telecommunications beyond those in last November's China-US WTO deal.

The EU talks are being watched closely in Washington.

US officials are keen to see China conclude agreements with the EU and several other countries so they can send their deal to Congress quickly for a vote on Beijing's trade status, wary of a surge in anti-China sentiment as a presidential election nears.

US labour unions have launched a major campaign to shoot down China's entry, citing what they say is Beijing's poor record on human rights and labour issues.

Beijing gave new ammunition to its enemies in the US Congress trying to scupper the WTO with policy white paper on Monday that threatened war if Taiwan dragged its heels indefinitely on reunification talks.

US lawmakers warned Beijing its threats could undermine Congressional support for the WTO deal.

EU officials say November's Sino-US trade pact, a breakthrough in China's WTO bid, met 80 per cent of EU concerns. But Brussels is keen to show it is not a pushover now that China has a deal with the United States, its biggest trading partner.

The Europeans have sought to press China to top some of the concessions made to the Americans in telecommunications and financial services, according to sources close to the talks.

In particular, the EU wants more licences for European insurers. China has granted business licences to just 14 foreign insurers, including five US firms and five European ones, but some US firms hold more than one licence.

They also have specific European issues to negotiate, such as access for British gin and Scotch whisky, French cosmetics and cheese and Italian leather goods.

China must reach bilateral agreements with all WTO members who request talks before it can join the body that sets global trade rules.

India signed a WTO deal with China yesterday, leaving the EU among just 13 members who have not reached pacts with Beijing. The EU's blessing is by far the biggest remaining obstacle to China's entry.