EU Makes Tentative Offer on Import Tariffs

U. S. Trade Representative nominee Susan Schwab testifies on Capitol Hill, in a file photo from May 16, 2006 before the Senate Finance Committee's hearing on her nomination. The United States faced mounting pressure to slash domestic farm subsidies after the EU said Wednesday it was willing to move toward developing counties' demands by making bigger cuts to its import tariffs. (AP Photo/Dennis Cook, File) (Dennis Cook - AP)

Oxfam, a global anti-poverty group, said the EU shift "could be a step in the right direction," but also chided Brussels and Washington for not giving enough ground to make a deal worthwhile for poorer countries.

Unless industrialized states radically improve their offers, Oxfam said in a statement, "poor countries may be better off postponing the conclusion of a deal."

The EU's softening appeared to coincide with a change in France's position. President Jacques Chirac, who last year threatened to veto any WTO treaty if Mandelson conceded more ground, said France and the EU were "ready to do their part" to reach a deal, according to a transcript of an interview with Brazil's TV Globo, released by his office.

"It's clear that the focus is now on what the Americans can do to cut more deeply into their farm subsidies," the EU's O'Sullivan said.

But Washington insists its trade partners have to do more before it goes beyond cuts announced last November, including a phasing out of agricultural export subsidies and 60 percent reduction to the most trade-distorting payments to farmers. U.S. corn and soybean producers would be among the most affected.

"The next move is to see how the EU is going to meet and exceed the G-20 proposal," said a U.S. trade official, who asked not to be named because the talks are confidential.

Negotiations are set to resume early next week at the WTO's Geneva headquarters.

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Associated Press Writer Sam Cage in Geneva contributed to this report.