BEIJING, March 27 (UPI) -- China is set for talks with the European Union this week in search of an agreement that would clear one of the last big obstacles for Beijing before entering the World Trade Organization.
The Beijing Youth Daily newspaper reported on Monday that China is ready for an agreement with the EU but it said that China was probably not going to offer more than it did to the United States in a trade deal agreed last November.
The newspaper said quoted Foreign Trade Minister Shi Guangsheng as saying, "There are few remaining disputes between China and the EU."
EU trade head Pascal Lamy is due in Beijing Monday to begin a third round of talks Tuesday.
The last round of talks ended without a result after days of negotiations. The areas of disagreement were said to have been in the telecommunications and services sectors as well as banking, distribution and life insurance.
Diplomats in Beijing said they expected a deal to be cut between the EU and China this week.
"The mood is favorable and it looks like a deal will be hashed out this week. All that remains are a few more partners to sign with China but this should be simple," said one diplomat.
The U.S. Congress is debating a bill, which, if passed, would give China permanent normal trade relations in exchange for Beijing opening its vast markets to the West.
Things could move swiftly for China entering the WTO but really everyone is just waiting to see what the United States does with NTR. If it does get NTR all that's left are a few administrative things, a lot to sign, but realistically China could be in the WTO by the beginning of next year, said the diplomat.
But not everyone is in favor of China getting NTR status. If approved China's goods would be exported to the same destinations that U.S. products now go to but without tariffs. Some say China should not be given such a privilege as it has just launched a series of threats against Taiwan.
But analysts and diplomats here watching the China-Taiwan war of words say things have clamed down drastically and it looks as though they will stay calm.
Some cite Taiwanese President-elect Chen Shui-Bian's economic interests in China as a reason for him to soft pedal his speech and step back from talk of independence from the mainland.
"Taiwan has $40 billion invested in China," said one analyst.
"If anything happened like an invasion all of that money would be frozen, all economic development in Taiwan would stop. That island's prosperity would halt."
Many predict a few months of China and Taiwan watching each other closely while Chen prepares for his inauguration in May and China prepares for entry into the WTO.
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