GENEVA (Reuters) - Long-running talks on China's entry to the World Trade Organization (WTO) appear to be running into trouble over Beijing's insistence that it must have the right to increase farm production subsidies, diplomats said on Friday.
A clearly angry Long Yongtu, China's top WTO negotiator, told reporters opposition -- believed to come largely from the United States and the Australian-led Cairns Group of countries -- to the granting of this right was "nonsense."
"This could be a real sticking point," said one envoy close to the negotiations, which China had earlier said it hoped could be wrapped up by the middle of next week.
A trade source said Long told a meeting of the working group of WTO states hammering out an entry accord with the Chinese that the issue was "crucial" for China. "He was very adamant on this point," the source added.
At the same time the chairman of the talks, WTO Deputy Director-General Paul-Henri Ravier told the working group and the Chinese that negotiators should urgently contact their capitals for new political guidance.
Diplomats said he told them they should try to do this over the weekend if the talks, which started on January 10 and are due to continue until next Wednesday, were to make any real headway toward a final agreement.
According to envoys and trade sources, other key problems still remain in the area of services, especially insurance, over customs treatment of imports into China, and over how soon foreign firms would have the right to start trading there.:
