EUROPE'S TRADE CHIEF BLAMED THE UNITED STATES ON FRIDAY FOR A VIRTUAL DEADLOCK IN GLOBAL TRADE NEGOTIATIONS, SAYING WASHINGTON MUST SCALE BACK ITS DEMANDS FOR SWEEPING CUTS TO AGRICULTURE TARIFFS, REUTERS REPORTED. WITH TIME RUNNING OUT FOR A WORLD TRADE ORGANISATION (WTO) DEAL, THE EUROPEAN UNION, THE UNITED STATES AND OTHER TRADING POWERS HAVE LOCKED HORNS OVER HOW TO CUT BARRIERS TO COMMERCE, RAISING FEARS THAT THE DOHA ROUND OF NEGOTIATIONS COULD FAIL. HOURS BEFORE DIPLOMATS WERE DUE TO MEET IN GENEVA IN A BID TO KEEP THE TALKS MOVING, EU TRADE COMMISSIONER PETER MANDELSON SAID HE WAS "LOOKING FIRST TO THE UNITED STATES" FOR "REALISM", ESPECIALLY ON THE POLITICALLY SENSITIVE ISSUE OF FARM TRADE. "WHAT THE U.S. IS CURRENTLY DEMANDING IS NOT ACCEPTABLE TO MOST WTO MEMBERS -- REPRESENTING HALF OF HUMANITY IN FACT -- AND NOT IMPLEMENTABLE IN EUROPE," MANDELSON SAID IN NOTES PREPARED FOR A SPEECH IN HELSINKI. THE U.S. DEMANDS WOULD MAKE FARMING IN EUROPE IMPOSSIBLE TO SUSTAIN AND WOULD HURT POOR COUNTRIES TOO, HE SAID. "QUITE SIMPLY, THIS HAS TO BE RECOGNISED FOR THE NEGOTIATIONS TO MAKE PROGRESS, AS I WANT THEM TO DO, IN AGRICULTURE AND ELSEWHERE IN THE TALKS," MANDELSON SAID.
