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World trade deal 'on knife edge' EU and US seek fresh trade push
(about 12 hours later)
World trade talks are on a "knife edge" European Trade Commissioner Peter Mandelson has told the Times. European Union and US leaders have agreed to seek fresh ways of resolving differences over global trade talks.
Despite talks breaking down last year Mr Mandelson said he had not given up hope of agreement on a deal. European Commission President Jose Manuel Barroso described talks with President George W Bush as a "defining moment" for the Doha trade round.
Ahead of talks in the US, Mr Mandelson said he would push President Bush to get "personally involved" in efforts to agree a global deal.
Disagreement over agriculture caused the Doha talks to be suspended in Geneva last year.Disagreement over agriculture caused the Doha talks to be suspended in Geneva last year.
Brussels blamed US inflexibility, while the US said Europe failed to match its promises in opening up its markets. Mr Barroso said negotiators had been told to come up with a solution to the impasse "as soon as possible".
"We are on a knife's edge. We have to engage President Bush personally, because this deal can only be done with his authority," Mr Mandelson told the Times. He described the talks in Washington on Monday as a "very good exchange" between the two sides.
President Bush said that both the US and the EU recognised that "the best way to help impoverished nations is to complete this Doha round to encourage the spread of wealth and opportunity through open and reasonable and fair trade".
Looming deadlineLooming deadline
Pressure to reach a deal has been mounting, as US President George W Bush's special "fast-track" authority to negotiate trade deals expires this year. Mr Mandelson has urged President Bush to push for a trade deal
European Trade Commissioner Peter Mandelson earlier said negotiations between the US and EU were on a "knife edge".
Brussels says US inflexibility is responsible for the breakdown between the two sides, while the US says Europe has failed to open up its markets. Pressure to reach a deal has been mounting as President Bush's special "fast-track" authority to negotiate US trade deals expires this year.
After 30 June 2007, Trade Promotion Authority will expire, giving the US Congress the right once again to change such agreements.After 30 June 2007, Trade Promotion Authority will expire, giving the US Congress the right once again to change such agreements.
At the talks, Mr Mandelson will push for the President's mandate to be extended and for the US to cut the $20bn it gives to farmers in subsidies - in return Europe is expected to offer further reductions in its trade tariffs. Mr Mandelson said he planned to push for the US to cut the $20bn it gives to farmers in subsidies.
If the US fails to reach a deal on subsidies and the White House mandate, trade talks risk being suspended for up to five years, Mr Mandelson added. In return, Europe was expected to offer further reductions in its tariffs.
However, he told the Financial Times he was hopeful of making progress when he and European Commission President Jose Manuel Barroso meet President Bush and US Trade Representative Susan Schwab in Washington. The Washington meeting comes as South East Asian leaders gather for the second round of their postponed annual summit.
"After a series of meetings of senior officials, it is clear that the gap between us is no longer such as to dismiss hope of a successful outcome. Trade will be high on the agenda, as well as agreements on energy and counter terrorism measures.
"We are not that far apart to give up on the process."
The Washington meeting comes as Southeast Asian leaders gather for the second round of their postponed annual summit.
Trade will be high on the agenda for the leaders of the 16 ASEAN member nations, as well as agreements on energy and counter terrorism measures.