Stalemate in Doha trade talks

The Doha Round of world trade talks is at risk unless a breakthrough comes soon on agricultural access, says Trade Negotiations Minister Jim Sutton.

Talks resumed in Geneva on Thursday but broke up early after the European Union's trade negotiator, Peter Mandelson, under pressure from France, was unable to better its offer to open its markets to farm imports.

"We all thought we were making progress," Sutton said yesterday. "There was significant movement towards cutting farm subsidies. But it was clear that unless that was matched by an opening up of markets, everything could fall by the wayside. We have days to avert a crisis."

Time is running short if substantial progress is to be made at a key meeting of the World Trade Organisation's 148 members in Hong Kong in December.

US Trade Representative Robert Portman said talks among Mandelson and his counterparts from the US, Brazil, India and Australia - known as the five interested parties - stalled because the EU made no new farm proposal. Mandelson had nothing to offer.

Mandelson is under pressure from France, which accuses him of exceeding his negotiating mandate.

French Prime Minister Dominique de Villepin insisted Mandelson make no new proposals until it was clear his negotiating stance tallied with EU and Common Agriculture Policy guidelines.

The EU overhauled the CAP in 2003, making subsidies less trade-distorting, and the French Government says it will not support any European Commission moves that are not compatible with those changes.