(adds Mandelson comments on EU state worries, timing)
DAVOS, Switzerland (AFX) - EU trade commissioner Peter Mandelson said he sees an ambitious trade liberalisation deal emerging in World Trade Organisation talks, while failure would prompt protectionism.
Mandelson made the comments in introductory remarks to a meeting of 30 WTO trade ministers held in the margins of the World Economic Forum, who urged a swift resumption of the Doha round talks.
'There are hundreds of billions of dollars of new trade riding on this round,' he said, according to a text of his remarks.
'But the equally important consideration are the systemic consequences of failure. The world will lose its insurance policy against the spread of protectionism.
'This is what makes an imperfect deal better than no deal.'
In the coming weeks, WTO trade ministers have to reach a judgement on the 'end game' taking shape, he said, identifying EU offers and demands in agriculture, industrial market access, and services.
On agriculture, he said he sees emerging acceptance for the G20 group of countries' proposal for cuts of an average of 54 pct in EU agriculture tariffs.
Mandelson reiterated the EU's readiness to add substantially to the 39 pct of cuts in agricultural tariffs that the EU offered a year ago.
'We are ready to add more than 10 pct points and get within close reach of the average farm tariff cut demanded by G20 developing countries,' he said.
'We are ready to do this in a way that demonstrably gives new market access to all exporters and all products. No loopholes,' he said.
On cuts in domestic subsidies to farmers, the EU would 'lock in' its 2003 farm reform, including the elimination of all export subsidies, he said.
'We urgently need clarity from other developed countries on what they intend to do,' he said.
The EU wants the US to cut its domestic agricultural subsidies.
On non-agricultural market access, offers should improve on existing market access, while respecting developing country sensitivities, Mandelson said.
On service trade, offers from WTO member countries should follow parameters set out previously, adding new market access in some key sectors, he said.
In further comments, Mandelson said he seen reports that some member states believe he has gone beyond his mandate in today's talks with WTO partners.
EU states have given Mandelson a negotiating mandate, and while he said he will not go beyond this mandate, he intends to negotiate to its limits.
'If some member states have expressed some surprise... I say to them we are not going to succeed if we don't negotiate up to the limits,' he said.
It will take two months of talks before 'the very difficult judgement' can be made on whether offers are sufficient for a successful outcome, he said.
nigel.tutt@thomson.com nt/paw/nt/nt COPYRIGHT Copyright AFX News Limited 2006. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited