Chirac undermining trade talks, says US

The US accused French President Mr Jacques Chirac of undermining world trade talks by taking a tough stand against a draft deal.

France has been leading efforts to put pressure on European Trade Commissioner Mr Pascal Lamy not to make too many concessions in the talks.

Mr Chirac said last week that a draft World Trade Organization (WTO) deal was unacceptable, just as negotiators try to wrap up an accord by an end-of-July deadline.

"I think President Chirac's comments are indicative of the fact that the EU position on agriculture is being seen as causing problems, and it is most obvious in the case of opening markets," US Trade Representative Mr Robert Zoellick was quoted by the Financial Timesas saying.

France gets most of the EU's farm support budget of €40 billion and has most strongly opposed Mr Lamy's offer in the trade talks to end agricultural export assistance if other big subsidisers, like the United States, make similar efforts.

"I think the fact that Chirac has been so public will lead everybody to look closely at how they handle the sensitive compromises we are going to have to come to in other areas," Mr Zoellick added.

He was also quoted as calling into question whether the EU would still try to solve the problem of US food aid, some of which the EU says amounts to dumping excess farm produce:

France is expected to press its demands that any offers on farm subsidies be matched by the United States as well as making sure the EU gets increased access to other countries' markets for industrial goods and services.