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EU wants improved trade deal from Mandelson: France

26 July 2008, 23:05 CET

(GENEVA) - EU member states want trade negotiator Peter Mandelson to improve the terms of a draft trade agreement under discussion by WTO countries here, French Trade Minister Anne-Marie Idrac said Saturday.

She said European Union ministers at a meeting Saturday called on Mandelson to "improve the accord" proposed late Friday by WTO chief Pascal Lamy, as world ministers headed to meetings in a bid to finally bridge their differences after years of deadlock.

"Several (EU) states welcomed the new slant to the negotiations. Some of them approve of the compromise which is already on the table," Idrac said.

Mandelson -- who in recent weeks has accused French President Nicolas Sarkozy of trying to undermine him -- separately said after a meeting with EU ministers that he had "backing" to push towards a deal.

World trade ministers would meet again Sunday "with the backing of EU member states to work on this emerging deal as the basis of a modalities package which we believe could unlock a final phase of a Doha agreement," he told reporters.

Mandelson pointed out, however, that European ministers had "concerns" on the so-called geographical indications issue, which concerns the protection of location names used on agricultural produce such as Parma ham from Italy.

It would be "politically very difficult for us" if negotiations do not advance on this issue, he said.

Ministers from 35 leading economies have been meeting at the World Trade Organization since Monday to discuss cuts in subsidies and import tariffs with the aim of mapping out a new deal under the so-called Doha Round of WTO talks.

The Doha Round was launched in the Qatari capital seven years ago but has been deadlocked because of disputes between the rich developed world and poorer developing nations on trade in farm and industrial products.

The talks in Geneva were heading for collapse until the draft accord was tabled Friday.

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