EU talks with China enter crucial phase

Date: 17/02/2000

By Shada Islam

China's 13-year-old quest to join the World Trade Organisation enters a crucial phase next week as EU negotiators begin a second round of market-opening talks with Chinese officials in Beijing.

Union officials say Trade Commissioner Pascal Lamy will be on standby to fly to Beijing at short notice if a bilateral deal appears to be within reach at negotiations between European Commission Director-General for Trade Hans-Friedrich Beseler and China's top WTO negotiator Long Yongtu.

The chances of getting an agreement look brighter following the progress made in three days of talks between Beseler and Yongtu in Brussels last month.

But EU efforts to secure improved access to the Chinese market have been only partially successful. The list of unresolved issues covers market access problems in areas such as agriculture and services, where the Union is still waiting for China to respond to its demands for lower import obstacles. Further efforts to persuade Beijing to reduce tariffs and eliminate quotas for industrial and agricultural products will also be required.

The Union has asked the Chinese to open up various rapidly-growing service sectors to foreign competition in addition to concessions already made to the US last November. The list includes telecommunications (especially mobile telephony), financial services including banks and insurance companies, tourism and professional services including working conditions for lawyers and accountants.

As EU officials prepare for next Monday's (21 February) talks, they are warning China against focusing all its efforts on securing US Congressional approval for its WTO agreement with Washington. They point out it could be equally difficult to persuade Union governments to endorse an accord if Beijing does not address Europe's concerns.

China's 13-year-old quest to join the World Trade Organisation is entering a crucial phase as EU negotiators begin a second round of market-opening talks with Chinese officials in Beijing.