France warns of EU risk to WTO deal

By William Schomberg

GENEVA (Reuters) - France warned on Monday that some European Union countries might block a final global trade deal unless the EU gets better terms, another headache for EU trade chief Peter Mandelson in the deadlocked negotiations.

"The risk exists that on this current basis there might not be unanimity in the European Council of ministers next year on a final agreement," French Agriculture Minister Michel Barnier told Reuters. "At the end of the road, we will need unanimity."

Asked whether France would use its power of veto to block a final deal, Barnier said: "I did not use that word."

France is one of nine EU member states -- a third of the total -- that on Monday formed an alliance to push for a better terms from the Geneva talks.

They have been going on for more than a week as countries try to salvage the seven-year-old Doha trade round.

France is Europe's biggest food producer and has been the most vocal defender of its huge farm subsidies and import tariffs. President Nicolas Sarkozy has warned Paris will not accept a deal if it offers too many agricultural concessions.

EU trade matters can be settled by a qualified majority of member states but in practice the bloc's acceptance of a global trade deal could not be done over the wishes of big countries.

Barnier said in an interview that France wanted a "balanced and reciprocal" WTO deal but that was not on the table.

Talks were continuing late into the night on Monday at the WTO with key players, such as United States, China and India, deadlocked over sensitive agriculture issues.

Europe needed more access to markets in big developing nations and new rules for protecting place names associated with food and drink products, such as Champagne wine, Barnier said, adding there was no clarity on new markets for services either.

"We encourage the European negotiators to be extremely determined," he said when asked whether France still had confidence in Mandelson and the European Commission which is negotiating on behalf of all EU member states.

Barnier, himself a former member of the EU executive, said he was speaking on behalf of the French government and not in the name of the EU presidency which France currently holds and is, he said, pursuing with impartiality.

EU presidents are expected to play a neutral role in brokering deals among member states.

Earlier on Monday, official sources in Paris said France was gathering support from other EU members for its opposition to the proposals on the table at the WTO.

Barnier said France had been in contact with EU leaders, European Commission President Jose Manuel Barroso and WTO chief Pascal Lamy in an effort to get a better, more balanced deal.