EU trade commissioner Peter Mandelson outlined his plan to pursue bilateral trade deals to open more markets to European Union products yesterday in the wake of stalled global trade talks.

He also warned that divisions in Europe over how to address increasing competition from Asia could "immobilise" the EU and undermine competitiveness.

Mr Mandelson made his comments a day before EU ambassadors meet in Brussels to discuss whether to impose anti-dumping duties on shoe imports from China and Vietnam. The issue has divided EU states - between southern members that have large shoe manufacturing industries and northern members that favour pro-trade policies.

In a policy speech in Berlin, Mr Mandelson warned that his experience in recent months suggests that Europe could become immobilised between competing interests if it could not find a way to re-establish consensus in the use of anti-dumping duties.

He said a review of EU anti-dumping rules would have to address the changing circumstances in Europe, whereby manufacturers in the EU are increasingly competing with European producers that outsource production to states such as China.

"We need to be sure that our trade defence instruments and our use of them take account of the new realities of globalisation," said Mr Mandelson, who has proposed levying duties of 16.5 per cent for Chinese leather shoes and 10 per cent for Vietnam. October 7th is the final date for imposing the new duties.

The proposal is supported by a group of shoe-producing nations led by Italy and opposed by states such as Ireland, Britain and the Nordic countries. The split in the EU is similar to one on anti-dumping duties on Chinese textiles imposed last year.

Mr Mandelson also pledged to begin negotiations on a series of bilateral trade deals with states in Asia, the Middle East and Europe in the wake of the stalled Doha round of world trade talks.

He said the EU should go beyond the existing bilateral free trade agreements by setting out the case for new free trade arrangements designed to deliver more open markets and fairer trading conditions.

Mr Mandelson said the EU remained committed to the Doha round and was not retreating from multilaterism. But he said talks had reached an impasse and it was up to the US to save them. "That missing piece is a commitment by the US to substantial reform of the 2002 farm bill to match the nature and scope of reform that Europe has been putting in place since 2003."