By Paul Eckert
BEIJING (Reuters) - Chinese and European Union negotiators got down on Tuesday to the fine print of a potential deal that would move Beijing to the brink of WTO membership.
Top level political talks lasted a mere hour between EU Trade Commissioner Pascal Lamy and Foreign Trade Minister Shi Guangsheng before they withdrew to leave lower level officials to work on the technical details of the crucial pact.
"The atmosphere continues to be constructive and that's not just a diplomatic expression," said Lamy's spokesman Anthony Gooch. "It's workmanlike. We're into the details."
This is their fourth -- and both sides say they hope it is the last -- round of talks this year on agreeing on China's terms of accession to the World Trade Organization.
Lamy, participating in the tough negotiations for the second time in hopes of getting a better deal than the United States did in November, kicked off the latest bid to seal an accord on Monday but has given no indication of how things were going.
"It is going to be a hard day," Lamy told reporters as he set off for Tuesday's talks. "As long as we have not concluded, we are working hard."
The 15-nation EU, the biggest of about 10 WTO members yet to sign a deal with China, is seeking further concessions in areas where European industry is strong -- telecommunications, life insurance, banking, vehicles and distribution.
It is the only member which seems to be still having serious difficulty reaching terms with Beijing.
Australian Trade Minister Mark Vaile said on Tuesday he hoped to sign an agreement with Beijing this week to maintain the international momentum for China's WTO accession.
No Timetable
Gooch told reporters after Monday's talks it was too early to say whether China had shown the greater flexibility Lamy called for, but he said technical talks over the past few days were conducted in a "positive and constructive spirit."
"We don't have any pre-ordained timetable," Gooch said when asked how long Lamy intended to stay.
"Our principle will be to stay for as long as it is constructive and useful and necessary, and hopefully that will be culminating with a deal at the end of it," he said.
There has been no comment so far from Chinese negotiators, who have made it plain they have no desire to go beyond the U.S. deal they signed in November -- one which some powerful ministries in Beijing thought had given far too much away.
The EU has said the U.S.-China deal covered 80 percent of its trade concerns.
At a Brussels news conference last week, Lamy singled out the fast-growing mobile telephone sector as a key point for the EU. He said he aimed for European firms to be able to take stakes of around 50 percent in Chinese mobile phone ventures.
However, Gooch said the two sides were negotiating on a broad range of issues, and a deal did not depend on telecommunications alone.
"It's incorrect to say the problems are limited to any one sector," he said.
U.S. Vote Looms
Lamy's leverage over China may never be greater than this week as Beijing could influence a key vote in the U.S. Congress by reaching agreement with the EU, business sources say.
To lock in the benefits of the U.S.-China deal, the Clinton administration says the United States must give up its annual review of China's trade status and permanently normalize trade.
In the week of May 22, the U.S. House of Representatives is scheduled to vote on legislation granting permanent normal trade relations to China.
Despite intense lobbying by the administration, a Reuters poll showed on Monday it was still 57 votes short of the number needed to get through the House of Representatives.
President Clinton has said a rejection would hurt U.S. business but would not lead him to block China's WTO entry.
All WTO members have the right to seek market-opening concessions from applicants in exchange for agreeing to them joining the body which sets global trade rules. Any concessions China makes to one WTO member must be offered to all.:
