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Agence France Presse

SHANGHAI, June 5 - The top US trade negotiator met China's foreign trade minister on Tuesday to discuss obstacles standing in the way of Chinese entry into the World Trade Organization.

US Trade Representative Robert Zoellick held talks with Foreign Trade Minister Shi Guangsheng for about 50 minutes shortly before noon (0400 GMT) in Shanghai, according to local Chinese officials.

Zoellick left the Shanghai International Convention Center, where the meeting had taken place, without talking to reporters waiting outside. He is scheduled to give a press conference later in the day.

The US trade representative's office said earlier that a meeting with Shi was part of Zoellick's schedule on the sidelines of a gathering of trade ministers from the 21-member Asia Pacific Economic Cooperation (APEC) forum this week in Shanghai.

"In his meeting with China, Zoellick will discuss developments related to China's accession to the WTO," the office said in a press release.

More than a year after China signed bilateral deals with the United States and the European Union paving the way for its accession to the world trade body, there is still no clear timetable for when it can become a member.

Domestic Chinese opposition to the painful reform measures that entry is likely to bring about has proven tougher than expected for Beijing, especially in the wake of rising tensions with the United States in recent months.

A stalemate over farm subsidies centers on China's demand -- aimed mainly at satisfying local consitutencies -- to be allowed subsidies of 10 percent and be regarded as a developing country.

Zoellick's meeting took place against the background of President George W. Bush's decision last week formally to ask Congress to renew China's low-tariff trade privileges with the United States.

The annual review of China's privileges had been due to pass into history after Beijing and Washington reached an historic WTO pact and Congress approved permanent normal trade relations (NTR) for China.

But that legislation was dependent on China joining the WTO, and a new congressional vote will therefore be needed to extend the privileges. Buoyed by the strength of the free trade lobby, the bicameral US Congress is not expected to overturn last year's vote.

Backing for renewed NTR from the White House could help inject new momentum into the WTO talks, observers said.

"It certainly can't hurt. It's a positive signal," said Pat Powers, director of China operations at the US-China Business Council in Beijing, who said China could enter the WTO in the first half of next year.

"Renewing NTR for China again could provide a push in the process towards Chinese accession to the WTO."

The US trade representative's office said Zoellick would meet separately with officials from most APEC members, including Singapore and Japan.

Minister Shi was also slated to hold a 30-minute meeting with WTO director general Mike Moore on Tuesday, Chinese APEC organizers said.

Another remaining obstacle to Chinese WTO membership is Beijing's failure so far to reach an agreement with Mexico, the only bilateral trade talks still not concluded.

Shi was so far not scheduled to meet with the Mexican trade representative sent to the Shanghai meeting, according to Chinese organizers of the APEC gathering.

China recently said it was willing to talk about the WTO during a China visit by Mexican President Vincente Fox scheduled for later this week.

Copyright 2001 Agence France Presse: