UPDATE 2-US, EU seek Doha deal "as soon as possible"

Thu Mar 19, 2009 3:50pm EDT

 * Kirk, Ashton says US, EU must lead by example in crisis
 * EU would like Doha deal before October
 * Beef deal close, EU report on gambling due next week
 (Recasts throughout with statement)
 By Doug Palmer
 WASHINGTON, March 19 (Reuters) - The top U.S. and European
Union trade officials pledged on Thursday to try to reach a
deal in long-running world trade talks "as soon as possible,"
but set no deadline for resolving tough remaining issues.
 "Extraordinary times require extraordinary leadership,"
U.S. Trade Representative Ron Kirk and EU Trade Commissioner
Catherine Ashton said in a joint statement, adding the United
States and the EU must lead by example in the global crisis by
resisting protectionism and keeping trade flowing.
 The meeting came during Kirk's first full day on the job,
after the Senate voted 92-5 on Wednesday to approve him as U.S.
trade representative. Kirk and Ashton also had dinner on
Wednesday just hours after that vote.
 "We agreed on the importance of achieving an ambitious and
balanced outcome to the WTO Doha Development Agenda as soon as
possible," they said in the statement that also noted that the
current economic turmoil had increased the temptation for
countries to turn away from the rules-based trading system.
 The Doha round was launched in November 2001 with the goal
of helping poor countries prosper through trade. An agreement
would require deep cuts in U.S. and European farm subsidies
that developing countries say have too long distorted
international trade.
 The Obama administration has said Washington cannot agree
to a Doha deal cutting U.S. farm subsidies and manufacturing
tariffs until advanced developing countries make better offers
to open their markets to U.S. goods.
 Ashton, at a separate briefing for reporters, said the EU
would like a Doha round agreement before the current European
Commission's term expires in October. She excused Kirk from
agreeing to any such goal on Thursday because the new U.S.
administration was still evaluating its position.
 "I'm very conscious in a first conversation timetables are
hard to pin down. And that's right and proper too. He needs to
think about it," Ashton said.
 Kirk and Ashton also pledged in their statement to redouble
efforts to resolve bilateral trade disputes.
 David O'Sullivan, the EU director general for trade, said
the two sides were "quite close" to resolving an old dispute
over EU barriers to beef from cattle raised with artificial
growth hormones, a common practice in the United States.
 The deal is expect to expand a quota for the United States
to sell naturally produced beef in the EU.
 Ashton also told reporters the European Commission would
release next week the long-awaited results of an investigation
into whether U.S. enforcement of a ban on Internet gambling
violated World Trade Organization rules.
 European online gambling companies complain the U.S.
Justice Department has unfairly gone after European firms while
allowing U.S. companies to operate with impunity.
 (Reporting by Doug Palmer; Editing by Peter Cooney)


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