European Union states were divided on Saturday over proposals to unblock a global trade deal, posing a test for EU trade chief Peter Mandelson as he tries to sell a deal to the bloc. A day after deadlock at World Trade Organisation (WTO) talks finally broke, when countries agreed to discuss compromises floated by WTO chief Pascal Lamy, Italy and Ireland said they were not satisfied.
"There is considerable disquiet and discontent (among EU countries) on a number of the specific aspects of it," Mary Coughlan, Ireland's deputy prime minister, told Reuters. "We have a couple of issues and one, of course, is agriculture. And we don't see the balance in NAMA (trade in industrial goods), and we haven't seen services at all as of yet," she added.
After a week of stalemated negotiations on the 'Doha' round aimed at liberalising trade by slashing import tariffs and trade distorting subsidies, negotiators from six key countries and the EU accepted the Lamy proposals as a basis to continue talks.
One diplomat said the talks, originally scheduled to end on Saturday, had been extended to Wednesday, July 30, but a WTO spokesman said there was no formal end-date. "Work continues and hopefully we will be able to get some summer holidays," Keith Rockwell told reporters.
EU Trade Commissioner Mandelson, who negotiates on behalf of the 27 EU member states, said of the Lamy compromise: "It's not beautiful, but it's finally put together what will be a genuine boost for the world economy".
But he may have trouble convincing EU states, many of which are concerned they will have to slash subsidies to politically powerful farmers without receiving enough access to developing markets for manufactured goods and services.
Italy's top trade official, Adolfo Urso, said he wanted more market access for industrial goods than offered in Lamy's draft, as well as progress on geographic indications - measures to protect place names associated with particular products, such as Champagne and Parma ham.
"Europe has made big concessions in agriculture without getting adequate opening on NAMA," Urso told Reuters on the way into a meeting with Mandelson for a debrief on the negotiations. Swedish Foreign Trade Minister Ewa Bjorling told Reuters: "We can accept this package as it is on the table."
India, which has pushed hard at the talks for a better deal for developing countries, said it was still not satisfied with the proposals. "We have brought many goodies, and we expect to receive new goodies. And if we don't, we will go back with the same goodies that we came with," said Indian WTO ambassador Ujal Singh Bhatia.
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