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China, EU open new round of market-opening talks

BEIJING: Chinese and EU negotiators opened a new round of market-opening talks on Monday to try to hammer out a deal that would remove the biggest remaining obstacle to China's membership of the World Trade Organisation.

The EU is the most important WTO member yet to conclude a trade deal with China and there are hopeful signs that this round could break a deadlock that has lasted for 13 years.

Washington clinched a historic market-opening agreement with China last November, and US officials are anxious for China to wrap up agreements with the EU and several other countries so they can quickly send the deal to Congress for a vote before anti-China sentiment sinks its prospects.

US labour unions have launched a major campaign in a presidential year to shoot down China's entry.

EU negotiators, led by European Commission trade official Hans-Friedrich Beseler, arrived at the Foreign Trade ministry on Monday morning to kick off talks scheduled to last an initial two days.

EU sources say a third day of negotiations would be arranged if all goes well and EU Trade Commissioner Pascal Lamy has said he is ready to jump on a plane to Beijing later in the week, depending on progress.

The Chinese team is headed by Vice Foreign Trade Minister Long Yongtu, China's top WTO negotiator.

CHINA'S HIGH HOPES

Premier Zhu Rongji told visiting WTO chief Mike Moore last week he hoped a deal would emerge from the Beijing talks.

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

Separately on Monday, Indian Commerce and Industry Minister Murasoli Maran met Foreign Trade Minister Shi Guangsheng to try to reach a WTO agreement.

Zhu, and President Jiang Zemin, have personal stakes in ensuring China's early membership having pushed for it in the face of bitter opposition from government conservatives.

The Europeans appear to be making the most of Beijing's anxiety, digging in their heels by insisting a good agreement is more important than an early one. Their clear message to Beijing is that the EU will not be a pushover now China has a deal with the United States, its biggest trading partner.

Lamy has said a deal could be finalised in as little as one month but warned that negotiations could stumble and drag on for eight months or more.

EU EYES INSURANCE, CONSUMER GOODS

The Europeans will be pressing 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, they want more operating licences for European insurers. They also have specific European issues to negotiate, for instance access for British gin, French cosmetics and Italian leather goods. Moore reported successful meetings last week with Zhu and Foreign Trade Minister Shi, and said he was "extremely hopeful" China would conclude negotiations with all its WTO trading partners this year.

In addition to the United States, Japan, Australia and Canada reached separate agreements with Beijing last year. Key emerging economies like Argentina, India, Thailand, Mexico, and Malaysia have still to complete their own accords with China. -Reuters