China-EU WTO Talks Enter into Second Day

China and the European Union began a second day of the fourth round of trade talks on Tuesday in Beijing with the EU preedicting tough negotiations on a deal that would pave the way for China's entry to the World Trade Organisation (WTO).

EU Trade Commissioner Pascal Lamy resumed talks with Foreign Trade Minister Shi Guangsheng after two hours of negotiations on Monday ended with no indication of whether Beijing had heeded a plea by Lamy for greater flexibility.

Despite expressions of hope of success from both sides, there has been no indication of progress.

"It is going to be a hard day," Lamy told reporters as he left his hotel. "It's back to work. As long as we have not concluded, we are working hard."

The 15-nation EU, the biggest of about 10 WTO members yet to sign a deal with China, is seeking further concessions in areas where European industry is strong -- telecommunications, life insurance, banking, vehicles and distribution.

Tuesday's talks were adjourned after about an hour but were due to resume later in the day, Lamy's spokesman, Anthony Gooch, said.

"It's an ongoing process," Gooch said, adding that technical talks were also continuing.

"You have technicians talking to each other because although issues may be dealt with at the political level, those issues still require experts and technicians to sit with each other to clarify certain points."

Gooch told reporters after Monday's talks it was too early to say whether China had shown more flexibility, but he said technical talks over the past few days were conducted in a "positive and constructive spirit".

"We don't have any pre-ordained timetable," Gooch said when asked how long Lamy intended to stay.

"Our principle will be to stay for as long as it is constructive and useful and necessary, and hopefully that will be culminating with a deal at the end of it," he said.

There has been no comment so far from Chinese negotiators as Lamy bids to improve on a deal Beijing signed with the United States in November.





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