[EU] eyeing free trade deals in Asia - Mandelson

from Reuters India

By William Schomberg

BRUSSELS (Reuters) - The European Union is exploring the prospect of free trade deals with Asian nations once the current round of world trade talks is over, EU Trade Commissioner Peter Mandelson said on Tuesday.

Mandelson stressed to a European Parliament committee that the European Commission, the EU's executive arm and trade negotiator, was still giving priority to making a success of the Doha round of multilateral trade liberalisation talks, about to enter their final month.

But in a hint that Europe might follow the United States into seeking more bilateral free trade agreements (FTAs), he said: "Securing effective market access for European goods and services in emerging economies such as those in Asia is high on our list of priorities.

"We are also exploring the willingness of possible future FTA partners to make serious commitments," he said.

He did not name individual countries but EU officials have said China, India, South Korea, Thailand and Malaysia could be among the targets.

Mandelson's comments appeared to reflect a growing sense in Brussels that the World Trade Organisation talks were likely to yield at most modest improvements, notably for developing countries, but no great leap forward on agriculture, services or goods trade.

He said this thinking about the way forward post-Doha was "only reflection at this stage" and the EU was watching FTAs being negotiated by others -- an allusion to Washington.

"FTAs are no quick fixes," he said.

TIME FOR BRAZIL, INDIA TO MOVE

In a speech to lawmakers, Mandelson insisted it was time for big developing countries such as Brazil and India to make concessions to unlock the global trade talks that are just over a month from a deadline.

A meeting of trade powers in London earlier in March failed to produce a significant advance in the talks and big moves were now needed as the WTO round neared its end, Mandelson said.

"There is a limited number of cards left on the table -- and they are the big ones," Mandelson said.

"They cannot be played in isolation. The lesson of the London meeting is that the time of incremental steps, small moves and small concessions, is over."

WTO members are trying to meet their April 30 deadline for agreement on agriculture and industrial goods, two key components of the so-called Doha round that has been under negotiation for more than four years.

Mandelson has so far resisted calls from agricultural exporting countries such as Brazil and the United States to go further with opening Europe's farm markets.

He is also under pressure from EU members including France to go no further with his offers to cut farm import tariffs.

But Mandelson reiterated he could offer greater access to the EU farm market if Brazil and India agreed to real cuts to their tariffs on imports of industrial goods -- such as cars and chemicals -- of which Europe wants to sell more.

Brazil had given "an important, albeit so far unfulfilled, signal" by showing it recognised the need for everyone to secure real tariff cuts in their key areas of interest, he said.

Brazilian officials said recently the EU and the United States needed to make the next moves required to break the deadlock by going further with their respective agriculture offers.

The WTO's Doha round was launched in 2001 with the aim of boosting the global economy and lifting millions out of poverty. It must be wrapped up in all its details by early next year.

Several deadlines for the round have already been missed. But negotiators say it risks collapse if a deal is not reached soon because U.S. President George W. Bush loses "fast-track" powers to approve trade deals in mid-2007.