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EUobserver | By Andrew Beatty | August 26, 2003

BRUSSELS - The European Union today (26 August) hit out at a draft World Trade Organisation agreement labelling it as biased.

The text will form the basis for a key ministerial meeting next month in Cancun, Mexico.

A spokesperson for the European Commission told journalists that the draft conclusions for the upcoming Cancun ministerial meeting did not "provide fair burden sharing [among WTO members]".

"In some areas we end up paying while the others cash in" said another spokesperson.

The Commission cited as sticking points the text's language on agricultural subsides, industrial goods and geographical indicators - the rules governing labelling of certain foods and drinks such as Parma ham.

The Commission has also been particularly upset that the text was not tougher on export credits, a subsidy on agricultural goods favoured by the US.

The EU's reaction has astounded observers.

"If you go through the annexes, which are the important parts it is all in favour of the US and EU", Alexandra Strickner of the Institute for Agriculture and Trade Policy, told the EUobserver.

The EU and US last week agreed to their own text on agriculture, ahead of the Cancun meeting.

Ms Strickner said that when the two texts are compared "almost all the lines are identical".

"We are very far away from being able to calling this a development round" she added.

Half Way The Cancun meeting will mark the half way point of this round on world trade negotiations.

After the failure to launch a previous round in Seattle in 1999 this meeting is being seen as a key test of the organisations strength and vital to the success of the round.

At the Doha meeting, which followed the collapse of negotiations in Seattle, many delegates were eager to make progress and to show solidarity after 11 September.

Many now believe that this good will has all but disappeared.

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