WTO talks stutter as EU blamed

EU and US trade negotiators have given up hope of reaching a full draft global trade deal by the end of this year.

WTO countries left Geneva talks on Wednesday accepting they have not made the progress they hoped for - but insist they will still push for the “best outcome” at the Hong Kong summit next month.

“I am sorry to report that we have not made the progress we had hoped for in order to prepare a framework for Hong Kong,” US trade representative Rob Portman told reporters on Wednesday.

“We have bridged some differences and narrowed the discussion, but we have not come up with formulas to negotiate into 2006.”

This week's Geneva meetings sought to establish what could be achieved in Hong Kong - long considered a vital bench mark on the route to a final trade by the end of 2006.

But talks ended in acrimony on Tuesday night, with Brazilian Trade Minister Celso Amorim blaming the EU for holding up progress.

Brazil has called on the EU to make big cuts to its farm tariffs, but EU Trade Commissioner Peter Mandelson has refused any further reductions.

Mandelson insists Brussels has offered all it reasonably can on agriculture - and blamed other countries for not following suit on industrial goods and services.

"There is a clear preference by the great majority to adjust expectations," he said on Tuesday.

“We have reasonably done everything we could be expected to do in agriculture. I want a proper negotiation to start (on other areas of trade) like it has started on agriculture."

The US slammed EU proposals as officials left Geneva on Wednesday, saying all WTO members wished to see Brussels give more on market access.

“Many countries have analysed the EU proposal on agricultural market access…and without exception they say there are so many opportunities for maneuver that they feel they are not being granted enough market access – if any at all,” US Agricultural Secretary Mike Johanns told reporters.

But Washington tried to put a on a brave face as they left Europe - insisting Hong Kong is “very much on.”

“Hong Kong was never meant to be the end of this process and the US will push for consensus and negotiations throughout 2006,” American officials insisted.

“It would be a grave mistake to say this round is over. We will work aggressively in 2006,” they promised.

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