Europe cannot go further in trade talks- France

Brasilia (Brazil), May 25: France rejected on Thursday a suggestion by the European Union that it could offer deeper cuts to farm import tariffs in an effort to unblock world trade talks and blamed the United States for the stalemate.

France is the biggest gainer from EU farm subsidies worth 44 billion euros (.16 billion) a year and has led a campaign among EU countries for the European Commission not to go further with its farm offer in the World Trade Organization talks, particularly on cutting import tariffs.

The EU said on Friday it was prepared improve its offer, a move that was rebuffed by the United States which said it still looked too small.

''Europe has done all it could do and should do and cannot go one step further,'' Chirac said at a joint news conference with Brazilian President Luiz Inacio Lula da Silva.

''It's the United States that in reality holds the key to this problem.'' The EU has long been criticized for offering too little access to its farm markets to make the United States move further on cutting subsidies for its farmers and encouraging big developing countries like Brazil to cut industrial goods tariffs.

The so-called triangle of issues is considered the key to unlocking the Doha round, which was launched in 2001 with the aim of reducing world poverty but has already missed several deadlines.

Chirac urged the G20 group of developing nations, including Brazil, to put some ''friendly pressure'' on the United States to ''become more reasonable on their completely excessive support'' of farm exports.

Lula said the G20 might be able to make concessions to reach an agreement in the talks.

''Brazil is disposed, with the G20, to make concessions for a (WTO) deal to be possible,'' he said.

The EU said last week it could move closer to the demands of the G20 -- which wants the EU to cut its farm tariffs by an average of 54 percent -- on condition other WTO members also make concessions.

The EU's current offer works out at an average cut of about 39 percent.

The United States is seeking tariff cuts of 66 percent by the EU and a big reduction in the number of goods the EU would classify as sensitive products to shield them from the full impact of the tariff cuts.

Reuters