Europe, U S must break WTO deadlock, China says

BEIJING, July 14 (Reuters) The United States and Europe need to show political will to break a deadlock in world trade talks, China said on Friday.

The statement came on the eve of the annual G8 summit in St. Petersburg, where the fate of the World Trade Organisation's Doha Round of market-opening talks will be on the agenda.

''Members such as the United States and those in Europe must have the political aspiration and determine their negotiating methods as soon as possible to push towards the conclusion of substantial talks by the end of July,'' Chong Quan, the Commerce Ministry's spokesman, said.

The end of July, before negotiators break for the summer holidays, is the latest in a series of deadlines that have come and gone since the talks started five years ago.

The final cut-off is the end of 2006 so a legal text can be prepared for submission to the U.S. Congress before President George W. Bush's ''fast-track'' power to sign trade deals expires in mid-2007.

As such, trade analysts say, the G8 meeting could be the last chance for leaders to signal a readiness to make the concessions needed for the talks to succeed.

''China maintains its overall goal of concluding the talks by the end of this year. We should keep up the momentum in the current talks,'' Chong said in a series of questions and answers posted on his ministry's Web site (www.mofcom.gov.cn).

Trade ministers failed two weeks ago to resolve deep differences over farm and industrial goods, which, along with services, make up the three pillars of the world trade talks.

Poorer nations have long insisted that wealthier countries must open their agriculture markets before they will open their industrial and services markets.

''China has always played a constructive role in the Doha round talks and is willing to continue consultation and cooperation with all sides and make active efforts to help reach a comprehensive, balanced result by the end of the year.'' President Hu Jintao will attend part of the G8 meeting, which brings together the leaders of the United States, Canada, Russia, Japan, Germany, Britain, France and Italy.

REUTERS PKS HT1752