US says EU statement on WTO talks failure 'false'

The US this afternoon accused the European Union of issuing a "false and misleading" statement blaming it for the suspension …

The US this afternoon accused the European Union of issuing a "false and misleading" statement blaming it for the suspension of global free trade talks.

In a statement issued by its Geneva trade mission, Washington said it hoped Brussels' "blamesmanship" would not jeopardise the "few chances left we have" of reviving the talks.

World Trade Organisation (WTO) chief Pascal Lamy called a halt yesterday to nearly five years of negotiations on a free trade deal, saying differences between the major powers could not be bridged.

EU Trade Commission Peter Mandelson pointed the finger at the United States, saying Washington had refused to produce any new proposals for slashing farm subsidies.

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"Yesterday's statement by the European Union alleging that the United States failed to show flexibility ... and attempting to divert blame for the stalemate is false and misleading," the US mission said.

US Trade Representative Susan Schwab said last night that Washington would have made a further offer on farm subsidy cuts had the European Union and India been prepared to lower tariffs to let US farmers export more.

"During recent discussions, it became clear that the EU was in fact offering even less market access than originally thought," the statement said.

It also accused Brussels of simultaneously announcing an "improved" offer on tariffs, or market access, and then removing it from the negotiating table.

"The United States has sought to conduct this negotiation without resorting to blamesmanship and finger pointing," it continued.

"We are deeply disappointed that the EU failed to exhibit similar restraint and hope that this will not jeopardise the few chances we have left to save the (WTO's) Doha round," it said, adding it planned to work with WTO states to put the talks back on track.