After two days of talks on agriculture in the so-called Doha Round in Geneva last week, trade ministers from the five interested parties the United States, the European Union, Brazil, India and Australia failed to reach an agreement on farm talks causing alarm by some members of the World Trade Organization to say that the upcoming ministerial meeting in Hong Kong in December would be doomed without a consensus on agriculture.

The Head of the World Bank, Paul Wolfowitz called on both the United States and the European Union Monday to do their part in securing a successful round in Hong Kong by reducing trade barriers in agriculture and market access or lest jeopardize the developing world.

"Everyone has work to do," Wolfowitz, wrote in an editorial printed in the Financial Times Monday. "The U.S. needs to do more to cut its subsidies substantially. The EU needs to do more on market access to provide significant new trade opportunities (and) developing countries need to open their markets... and lower their own agricultural protection."

"Unless serious concessions are made by all sides... the Doha round of trade talks will fail and the people who will suffer the most are the world's poor," added Wolfowitz.

The European Union has been charged with reticence following last week's collapsed talks. Members have argued that the EU has allowed French dissent on agricultural negotiations to overrule the interests of global trade talks. France has traditionally been one of the strongest supporters of the EU's Common Agricultural Policy.

While the European Trade Commissioner Peter Mandelson received full backing by EU foreign ministers in Luxembourg on Tuesday, he has continued to receive strong French criticism over the current negotiations. France argues that Mandelson has not received a full mandate by the 25 member states to continue agriculture talks. It also argues that negotiations should be redirected to other areas like services, non-agriculture market access and rules.

"We will not accept WTO talks that go back on (2003's) unanimous decision of Europe," Phillipe Douste-Blazy, French Foreign Minister told Journal du Dimanche newspaper.

Attempting to regain traction, Mandelson pledged to reach an agreement with the United States on agriculture within one week to 10 days, after a strong urging by head of the WTO Pascal Lamy last week.

Mandelson on Monday made the case for substantial cuts in agricultural support and tariffs, arguing that the EU must be never "be cast as selfish or indifferent."

"If we want greater market access in advanced developing counties for our top quality manufacturers and services, we have to give increased agricultural market access in return. In effect, we are trading in our presently agreed Common Agriculture Policy reforms for access to other's markets," said Mandelson, in a speech at an informal meeting of EU development ministers.

"If we want the U.S. to reform its own domestic subsidy regime - and if we want the Brazilians to cut industrial tariffs and open up services - we have to move on agricultural tariffs, there's no other way."

Mandelson in the past has pushed for a balanced agriculture agreement which would include a greater flexibility on market access, but has repeatedly argued that negotiations cannot be centered on agriculture alone.

"The round must have balance. Europe does not expect equivalence in outcome, but we have to register progress in all areas of negotiations," said Mandelson, in a statement after the conclusion of talks in Geneva.

In recent days, trade officials have warned that without a more ambitious proposal by the EU this week, there would be no point in hosting the upcoming ministerial in Hong Kong. The EU is expected to announce their new proposal by Friday.

"The director-general of the World Trade Organization has warned that it may be necessary to postpone the Hong Kong ministerial meeting if the European Union does not put forward a better proposal on market access," Mark Valie, Australian Trade Ministers said in an address at the Sydney Institute, the Australian reported.

While the United States has argued that negotiations on other areas will not take precedence before agricultural negotiations are complete, it did not support the cancellation of talks in December.

"U.S. trade officials are working to make Hong Kong a success," said Christin Baker, spokeswoman for U.S. Trade Representative Rob Portman.

U.S. negotiators have repeatedly said that its proposal to cut its domestic support by 60 percent is conditional on other members reducing trade barriers and eliminating subsidies, as well as opening up market access.

Under the EU's current proposal it promises to cut a third of its tariffs. The U.S. and G-20 proposals are far more progress with a call for the EU to cut its domestic support by 75 percent. The G-20 calls on the EU to cut it support to 54 percent.

The United States has been in favor of the G-20 proposal for offering real cuts, but has not come out in full support of the agreement.

Trade ministers enter another critical round of negotiations this week, with a looming 10-day deadline on the European Union to advance agriculture talks or risk squashing a global trade deal.

After two days of talks on agriculture in the so-called Doha Round in Geneva last week, trade ministers from the five interested parties the United States, the European Union, Brazil, India and Australia failed to reach an agreement on farm talks causing alarm by some members of the World Trade Organization to say that the upcoming ministerial meeting in Hong Kong in December would be doomed without a consensus on agriculture.

The Head of the World Bank, Paul Wolfowitz called on both the United States and the European Union Monday to do their part in securing a successful round in Hong Kong by reducing trade barriers in agriculture and market access or lest jeopardize the developing world.

"Everyone has work to do," Wolfowitz, wrote in an editorial printed in the Financial Times Monday. "The U.S. needs to do more to cut its subsidies substantially. The EU needs to do more on market access to provide significant new trade opportunities (and) developing countries need to open their markets... and lower their own agricultural protection."

"Unless serious concessions are made by all sides... the Doha round of trade talks will fail and the people who will suffer the most are the world's poor," added Wolfowitz.

The European Union has been charged with reticence following last week's collapsed talks. Members have argued that the EU has allowed French dissent on agricultural negotiations to overrule the interests of global trade talks. France has traditionally been one of the strongest supporters of the EU's Common Agricultural Policy.

While the European Trade Commissioner Peter Mandelson received full backing by EU foreign ministers in Luxembourg on Tuesday, he has continued to receive strong French criticism over the current negotiations. France argues that Mandelson has not received a full mandate by the 25 member states to continue agriculture talks. It also argues that negotiations should be redirected to other areas like services, non-agriculture market access and rules.

"We will not accept WTO talks that go back on (2003's) unanimous decision of Europe," Phillipe Douste-Blazy, French Foreign Minister told Journal du Dimanche newspaper.

Attempting to regain traction, Mandelson pledged to reach an agreement with the United States on agriculture within one week to 10 days, after a strong urging by head of the WTO Pascal Lamy last week.

Mandelson on Monday made the case for substantial cuts in agricultural support and tariffs, arguing that the EU must be never "be cast as selfish or indifferent."

"If we want greater market access in advanced developing counties for our top quality manufacturers and services, we have to give increased agricultural market access in return. In effect, we are trading in our presently agreed Common Agriculture Policy reforms for access to other's markets," said Mandelson, in a speech at an informal meeting of EU development ministers.

"If we want the U.S. to reform its own domestic subsidy regime - and if we want the Brazilians to cut industrial tariffs and open up services - we have to move on agricultural tariffs, there's no other way."

Mandelson in the past has pushed for a balanced agriculture agreement which would include a greater flexibility on market access, but has repeatedly argued that negotiations cannot be centered on agriculture alone.

"The round must have balance. Europe does not expect equivalence in outcome, but we have to register progress in all areas of negotiations," said Mandelson, in a statement after the conclusion of talks in Geneva.

In recent days, trade officials have warned that without a more ambitious proposal by the EU this week, there would be no point in hosting the upcoming ministerial in Hong Kong. The EU is expected to announce their new proposal by Friday.

"The director-general of the World Trade Organization has warned that it may be necessary to postpone the Hong Kong ministerial meeting if the European Union does not put forward a better proposal on market access," Mark Valie, Australian Trade Ministers said in an address at the Sydney Institute, the Australian reported.

While the United States has argued that negotiations on other areas will not take precedence before agricultural negotiations are complete, it did not support the cancellation of talks in December.

"U.S. trade officials are working to make Hong Kong a success," said Christin Baker, spokeswoman for U.S. Trade Representative Rob Portman.

U.S. negotiators have repeatedly said that its proposal to cut its domestic support by 60 percent is conditional on other members reducing trade barriers and eliminating subsidies, as well as opening up market access.

Under the EU's current proposal it promises to cut a third of its tariffs. The U.S. and G-20 proposals are far more progress with a call for the EU to cut its domestic support by 75 percent. The G-20 calls on the EU to cut it support to 54 percent.

The United States has been in favor of the G-20 proposal for offering real cuts, but has not come out in full support of the agreement.

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