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China to resume EU talks, sees WTO entry soon

KUALA LUMPUR: China, putting a bright face on tough trade talks with the European Union, said on Wednesday that it will soon resume negotiations with the EU and it expects to join the World Trade Organisation (WTO) soon.

The EU is the biggest trade power that has yet to reach an agreement with Beijing on WTO entry following Chinese agreements with the United States, Japan, Canada and other WTO members.

The latest round of market-opening talks between China and an EU delegation ended without agreement in late March, denting Beijing's hopes of joining the WTO this year.

Chinese Foreign Trade Minister Shi Guangsheng told a business conference in Malaysia's capital that Beijing would resume talks in the near future with the EU.

"I believe China will reach an agreement on WTO with the EU and this will not hinder China's entry into the WTO," Shi told the conference.

"At present both the bilateral negotiations and multilateral procedures of China entering into the WTO are entering the final stages, and it will not be long before China can join the organisation," he said, speaking through an interpreter.

China has held three rounds of talks with the EU in two months.

"It is fair to say that each round of talks has made important achievements, especially the recent one has achieved significant progress," Shi said.

"The failure to clinch a deal during the last negotiations does not mean the breakup in bilateral negotiations because each side needs to coordinate their stance on some questions. In the near future, we will resume talks on these issues."

EU WANTS TALKS SOON

On Monday, the EU urged China to show flexibility at the talks, which would pave the way for China's entry into the WTO.

EU Trade Commissioner Pascal Lamy said he did not know when he would go to China for more talks but added: "The sooner, the better."

The EU says 80 percent of its trade concerns were covered by a US-China agreement reached last November, but wants further concessions on certain tariffs and in sectors such as life insurance and mobile telephones. The details of the negotiations have been kept strictly secret.

Any WTO member has the right to have talks with applicant countries to seek market-opening concessions.

Shi said China remained committed to removing barriers to trade and investment as part of its bid to join the WTO.

"Following China's entry into the WTO, it will abide by the international prevailing rules and fulfil its own commitments and further open up its commercial and services sector," he said.

China plans to cut import tariffs on industrial goods to an average 15 percent this year and to 10 percent before 2005.

China will also continue to open up to foreign investment in sectors including financial, insurance, telecommunications, energy, transportation, infrastructure and retail, Shi said.

"China will actively absorb foreign capital to participate in the restructuring and rebuilding of China's state owned enterprises by various forms," he said.

Shi said China was keen to be part of a new round of global trade talks under the WTO and has vowed to help improve relations between members of the organisation.

"China will be a responsible and constructive member."-Reuters