US warns trade talks could fail

Mr Portman wants a breakthrough next week in London

The US has warned that efforts to sign a new global free trade deal could fail unless agreement is reached next week on farm subsidies and tariffs.

The comments came from US trade boss Rob Portman ahead of talks next week in London with his opposite numbers from the European Union and other nations.

A new trade pact is supposed to be in place for 2006, but the US and EU have so far failed to agree on agriculture.

The US says the EU is not making enough compromises on the issue.

Both agree that they need to both reduce support for their own farmers, at the same time as lowering tariffs for imports from developing nations, but Washington and other countries insist Brussels must go further.

Mr Portman could also be heading for Africa in the week beginning 7 November to discuss the US's huge cotton subsidies, Reuters reported.

Ticking clock

The problem for EU Trade Commissioner Peter Mandelson is that a number of his member states with large agricultural communities, most notably France, are pressuring him not to make too many concessions.

The farming issue has held up the general trade talks

When Mr Mandelson last week made a fresh proposal to cut average tariffs by 47%, the US said he wasn't going far enough, and France said he was exceeding his mandate.

Mr Portman warned on Wednesday that "the clock is ticking".

The US, the EU and other members need to have the broad outlines of a new global trade deal in place ahead of a key World Trade Organisation ministerial meeting in Hong Kong in December.

This is timetabled to rubber stamp the final agreement and bring the so-called Doha round of talks to successful conclusion.

Renewed French pressure

Mr Portman warned on Wednesday that if agreement is not found soon on farming, it will also not be achieved in other areas.

"My frank assessment is if we can't pull it together next week... then it will be very difficult to pull together other areas like services and non-agricultural market access in time for a successful Hong Kong meeting," he said.

Yet France on Wednesday renewed its threat to veto a final deal if Mr Mandelson makes further concessions.

In addition to next week's meeting in London, global trade officials are to hold talks in Geneva on Thursday, as efforts continue to try and find a breakthrough.