Union closer to WTO deal with China

Date: 11/11/1999

By Gareth Harding

THE EU and China are inch-ing towards an agreement on the conditions for Beijing's entry into the World Trade Organisation.

But sources say a deal is highly unlikely before the next round of global trade talks kicks off in Seattle later this month.

Senior Chinese negotiators claim 85-90&percent; of the obstacles to an agreement have been ironed out, but Union officials are less upbeat about the progress made since talks on China's entry into the trade club resumed last month.

“We are going through a bit of a hide-and-seek phase,” said one, who insisted the ball was now in Beijing's court to come forward with better offers on market-opening.

During the most recent round of talks, China proposed cutting average tariffs on industrial goods to 10&percent;. European Com-mission officials said this was “beginning to look reasonable”, but the EU is still holding out for rates of around 7&percent;. The Union is also arguing for a major reduction in duties on specific goods such as cars, where China is proposing to impose import levies of 35&percent;.

While there has been some progress in the industrial sector, the two sides are still far apart on opening up China's banking, insurance and telecoms sectors to foreign firms. Both the EU and US have made liberalisation of services a precondition for WTO membership, but Beijing is refusing to surrender majority control in such sectors.

The Commission is sticking to the basic market-opening demands it has made. “We are not in the business of making offers,” said one official, adding: “We are inside the theatre. They are the ones buying a ticket.”

The EU has told Chinese negotiators to come up with improved offers in time for a high-level summit provisionally scheduled for next Wednesday (17 November).