Index

DATE=2/25/2000 TYPE=BACKGROUND REPORT TITLE=CHINA E.U. TRADE TALKS NUMBER=5-45516 BYLINE=AMY BICKERS DATELINE=HONG KONG INTERNET=YES CONTENT= VOICED AT: INTRO: Talks between the European Union and Beijing on China's accession to the World Trade Organization faltered this week. But as Amy Bickers reports from Hong Kong, the European Union remains hopeful that an agreement will soon be reached. TEXT: Top negotiators from the European Union left Beijing Friday, after four days of talks with their Chinese counterparts on Beijing's long-desired goal to join the W-T-O. While no deal was struck, another round of negotiations is expected. The E-U says significant progress was made this week, but warns that major disagreements persist. Victor Monfort of the European Union's Hong Kong office says stumbling blocks remain, but refused to go into detail. /// MONFORT ACT /// We have always been very supportive of China's W-T-O accession. That has been a consistent point in our policy. So far nothing has changed there. Obviously that accession has to be done on terms that are acceptable to all parties. Our position is respect of China's accession has not changed and we are extremely supportive. /// END ACT /// A key issue is said to include a European demand for greater access to the telecommunications market. Insurance is another contentious subject. While Chinese trade officials say the two sides are very close to a deal, Mr. Monfort says they have yet to make a breakthrough. /// MONFORT ACT /// The positions have narrowed and the gap is narrower but we will need further discussions. No date has been fixed so far nor a venue for talks. /// END ACT /// Both sides had hoped that the talks would lead to a deal similar to the one struck last year between Washington and Beijing. In that accord, Washington pledged to support China's W-T-O membership and Beijing agreed to open various industries to foreign business interests. Before China can join the trade body, it must reach separate market access agreements with all of the W-T- O's 135 members. The E-U is among 13 yet to conclude negotiations. The talks with the E-U took place against a backdrop of growing opposition to China among some U-S lawmakers. Earlier this week Beijing threatened to use military force to achieve reunification with Taiwan, angering many in Washington who say reunification must be a peaceful process. The political tension is casting a shadow over the upcoming Congressional vote on the U- S/China trade accord. So while China must win over Brussels, it is also faced with growing concerns among American lawmakers. (SIGNED) NEB/AB/FC/PLM 25-Feb-2000 05:46 AM EDT (25-Feb-2000 1046 UTC) NNNN Source: Voice of America .