The EU overcame internal differences on Monday for world trade talks, demanding greater account of its interests and pressing its biggest trading partner Washington for concessions over farming subsidies.

European Union foreign and trade ministers backed the strategy of the bloc’s Trade Commissioner Pascal Lamy in the run-up to an end of July deadline for a draft World Trade Organization (WTO) deal.

Lamy had been under particular pressure from France, which fears too many concessions over the EU’s 40 billion euro farm support budget, of which it is the biggest beneficiary.

Earlier, the United States accused French President Jacques Chirac of undermining world trade talks by taking a tough public stand, as the WTO makes a final push aware that failure could postpone for years any lowering of global barriers to commerce.

Some EU countries want Lamy to ensure any concessions are matched by other WTO members, but he avoided having his hands tied too much by the ministers – his political masters. “We now have a very strong and clear mandate with a lot of political energy, which is what we need,” Lamy told a news conference, adding the EU had made good offers at WTO talks.

The ministers’ final statement gave him broad backing to seek a “balanced framework,” but omitted more precise wording on how Lamy should conduct agricultural negotiations.

<B>Meeting held at France’s request</B>

The ministerial meeting, the fourth in two months on trade negotiations, was held at the request of France. The central theme of the WTO talks is the politically sensitive issue of making agricultural markets fairer as well as reducing trade barriers to industrial goods and services.

The WTO wants to secure a framework deal in order to keep the present so-called Doha round of world trade talks alive.

The EU has offered to reduce domestic farm support and end export subsidies, but it wants to protect farmers who produce products deemed sensitive, such as dairy goods and beef.

Lamy said the United States had to reduce or discipline its export aid and reform its $51.7 billion six-year farm bill, estimated to boost US crop and dairy subsidies by 67 percent.

France has strongly opposed Lamy’s offer in WTO talks to end agricultural export assistance if other countries like the United States make similar efforts over subsidies.

US Trade Representative Robert Zoellick underlined tensions in WTO negotiations by criticizing Chirac. “I think President Chirac’s comments are indicative of the fact that the EU position on agriculture is being seen as causing problems, and it is most obvious in the case of opening markets,” Zoellick was quoted as saying by the Financial Times.

He was also quoted as calling into question whether the EU would still try to solve the question of US food aid, some of which the EU says amounts to dumping excess farm produce. Signaling the sensitivities of the WTO talks, the EU ministers decided to hold yet another meeting at the end of the week to discuss any deal Lamy finally concludes.

The Doha round was launched in the Qatari capital in November 2001 when the world economy was reeling from the impact of the Sept. 11 attacks on the United States.

It aims to lower barriers to trade in farm and industrial goods and services, paying special attention to developing country issues.

But developing countries say it has failed to live up to expectations and accuse richer states of dragging their feet on commitments to cut agricultural subsidies and open their highly protected farm markets.

The round was due to finish at the end of 2004, but that deadline will be missed.