By Paul Eckert
BEIJING (Reuters) - Chinese and EU negotiators held a new round of market-opening talks on Monday to try to hammer out a deal that would remove the biggest remaining obstacle to China's membership in the World Trade Organization.
EU officials refused to comment on the technical negotiations beyond confirming the talks would resume on Tuesday as scheduled.
"The talks will continue tomorrow," said a Beijing-based EU official.
EU sources say a third day of negotiations would be arranged if all goes well and EU Trade Commissioner Pascal Lamy has said he is ready to jump on a plane to Beijing later in the week, depending on progress.
The EU is the most important WTO member yet to conclude a trade deal with China and there are hopeful signs that this round could break a deadlock that has lasted for 13 years.
Washington clinched a historic market-opening agreement with China last November, and U.S. officials are anxious for China to wrap up agreements with the EU and several other countries so they can quickly send the deal to Congress for a vote before anti-China sentiment sinks its prospects.
U.S. labor unions have launched a major campaign in a presidential year to shoot down China's entry.
EU negotiators, led by European Commission trade official Hans-Friedrich Beseler, met with a Chinese team headed by Vice Foreign Trade Minister Long Yongtu, China's top WTO negotiator.
India Cites Progress
Premier Zhu Rongji told visiting WTO chief Mike Moore last week he hoped a deal would emerge from the Beijing talks.
China must reach agreements with all WTO members before it can join the body that sets rules for global trade.
Separately on Monday, Indian Commerce and Industry Minister Murasoli Maran met Foreign Trade Minister Shi Guangsheng to try to reach a WTO agreement.
"Substantial progress has been made and we'll probably be able to sign an agreement tomorrow afternoon," said an Indian embassy spokesman.
Zhu and President Jiang Zemin have personal stakes in ensuring China's early membership, having pushed for it in the face of bitter opposition from government conservatives.
The Europeans appear to be making the most of Beijing's anxiety, digging in their heels by insisting a good agreement is more important than an early one. Their clear message to Beijing is that the EU will not be a pushover now that China has a deal with the United States, its biggest trading partner.
Lamy has said a deal could be finalized in as little as one month but warned that negotiations could stumble and drag on for eight months or more.
Eu Eyes Parity With U.S.
The Europeans were expected to press China to top some of the concessions made to the Americans in telecommunications and financial services, according to sources close to the talks.
"The Chinese have designed with the Americans a nice suit, but if it's to be worn by a European, the arms may need to be lengthened slightly and the legs stretched," said Adam Williams, general manager of China business for Jardine Fleming.
In particular, the EU wants more operating licenses for European insurers.
"The Europeans want at least parity with the Americans on insurance and that means more licenses," said Hu Yan, Beijing chief representative of Prudential Plc, which was awarded a license last year to do life insurance business in Guangzhou.
China has granted business licenses to just 14 foreign insurers, including five U.S. firms and five European ones, but some U.S. firms hold more than once license.
They also have specific European issues to negotiate, for instance access for British gin and Scotch whisky, French cosmetics and Italian leather goods.
"The Americans got lower tariffs on bourbon, for example, but what about Scotch whisky? There has to be a fair balance of concessions," a European diplomat said of the EU's aims.
In addition to the United States, Japan, Australia and Canada reached separate agreements with Beijing last year. Key emerging economies like Argentina, India, Thailand, Mexico, and Malaysia have still to complete their own accords with China.:
