MercoPress. South Atlantic News Agency

Vital WTO talks begin with recriminations.

On the eve of decisive negotiations in Geneva in the framework of the World Trade Organization, United States accused French president of Jacques Chirac of setting obstacle to a draft agreement worked out by the European Union in an attempt to harmonize a common position.

France has been leading efforts to press Trade Commissar Pascal Lamy not to make too many concessions in the coming round of negotiations which are due to end by next Friday since the deadline can no longer be extended.

Last week President Chirac said that the draft compromise presented by WTO General Council chairman Shotaro Oshima of Japan was "unacceptable", even when the European Commission described it as a "basis for further work".

"I believe that recent statements from President Chirac are a clear indication that the EU position regarding agriculture is causing problems, particularly market opening and access", said US Trade Representative Robert Zoellick quoted by the Financial Times. The Oshima draft includes measures to end farm subsidies although it's less specific regarding the issue of farm support.

The proposals are "deeply unbalanced to the disadvantage of the EU", is the official French position.

France which is one of the main beneficiaries from the EU farm support budget of almost 50 billion US dollars is against any proposal to limit agriculture export subsidies unless other countries, such as the United States, don't make a similar effort.

French opposition to EU concessions in the coming WTO discussions was under consideration in an extraordinary meeting of EU Trade and Foreign Affairs ministers in Brussels on request from Paris.

WTO officials are pressed to achieve a framework understanding, with specifics to be discussed further on, so the current round of trade negotiations can be kept alive. The WTO meeting is the first since the breakdown of talks last September in Cancun, Mexico. Fierce differences between rich and poor countries particularly over agriculture have stalled negotiations and led to the collapse of last year's ministerial talks in Mexico.

Developing countries have demanded that the talks in Geneva commit richer countries to deep cuts in agricultural subsidies which they argue deny them access to markets.

WTO chairman Supachai Panitchpakdi remarked that "nobody's vital interests will be put at risk by the deal we are seeking, but everybody will suffer if we do not get one".