EU 'backs Mandelson at WTO talks'

Peter Mandelson has to balance different views across Europe

European Union Trade Commissioner Peter Mandelson has the "full support" of member states ahead of key world trade talks, his office has said.

Mr Mandelson, who is leading EU negotiations on tariff and subsidy reform, has been accused of not making enough concessions on agriculture.

Time is running out for negotiators trying to finalise a deal this year.

The US trade representative said Washington was "very ambitious" in its aims for a global trade treaty.

"The key element here is to maximise the market opening that takes place," Susan Schwab told the BBC.

"If we are not able as a multilateral group to come up with a highly ambitious outcome why bother with the negotiations."

Doha round

Taking place later this month, the aim is for an outline agreement on a new global trade deal to be in place by the end of July.

A final deal is then timetabled to be signed by the end of this year, thereby ending the so-called Doha round of trade talks that first started in 2001, and has already missed a number of deadlines.

"Peter Mandelson gave a full report on the state of the negotiations in the Doha Round and the EU negotiating position and received the full support of the Member States," said European Commission spokesman Peter Power.

French pressure

The US and leading developing nations such as Brazil have long accused the EU of causing the delays by refusing to make sufficient concessions on reducing support for European farmers and tariffs for imported food products.

Brussels counters that it is the US that is not making enough concessions on agriculture, and that the developing world is not doing enough to open up to EU manufactured goods.

The difficulty for Mr Mandelson is that he cannot negotiate freely, and is not able to offer more concessions on agriculture than certain member states could stomach.

While nations such as the UK, Sweden and Denmark are keen for Mr Mandelson to offer extensive concessions on agricultural protectionism, others - most notably France - have repeatedly warned him not to go too far.

France, which appears determined to best protect its farmers, has reminded Mr Mandelson that he cannot go beyond the remit laid down by the EU's Common Agricultural Policy.

The Organisation for Economic Cooperation and Development said last week that if global trade tariffs and subsidies were cut in half, it could contribute an extra $44bn (£24bn) to the worldwide economy.