"Europe is ready to give more than others. But it is not willing to get nothing in return," said Peter Mandelson, European Union trade commissioner in Berlin before the German business community.

The EU, which has consistently argued that the so-called Doha Round is not "an agriculture-round only," has been calling in recent weeks on emerging developing countries, including the leaders of the Group of 20 developing nations -- India and Brazil -- to show greater flexibility in revising their offers on industrial tariffs and services. Brussels has made clear it will be unable to make further movements on liberalizing agricultural market access, if it does not receive concessions from other trading partners on these two vital sectors.

"There is no alternative to negotiation. I am sure Europe is willing to move faster and go further where that is appropriate -- but not in a race with ourselves," said Mandelson.

While the EU trade chief described the current state of negotiations as "serious, but not desperate," he called on trading partners to unblock long-protected sectors in order to promote growth in the world economy and achieve an ambitious successful round.

Despite reports by some non-governmental agencies that the development gains of liberalizing services trade would be nominal, Mandelson argued that developing countries in recent years have shifted away from agricultural trade to trade in industrial goods and services. The EU trade chief said developing countries would reap the benefits from lowering industrial tariffs between North-South and South-South trade.

"The blockage in the (Doha) Round is not in Brussels. ... Europe cannot envisage a Doha round that would be concluded on the basis of real cuts by Europe and paper cuts by others," said Mandelson. "I must make clear any developed or emerging economy that thinks it can come to the Doha table empty handed, will, I'm afraid, go home the same way."

Trade talks ended with limited progress during last month's World Trade Organization ministerial in Hong Kong. While WTO head Pascal Lamy signaled trade ministers from 150 countries had found new political will to conclude talks by 2006, he hastened to add that much more progress will be needed to achieve ambitious results.

Ministers from roughly 30 key countries are expected to meet this week in sidebar meetings at the World Economic Forum in Davos, Switzerland. The meeting chaired by the Swiss government is not expected to yield any progress, but will be an opportunity for trade chiefs to access the current state of talks.

Trade negotiators left Hong Kong reaffirming their commitment to complete Doha negotiations by 2006 and agreed to reconvene by April 30 in the hopes of reaching agreement on modalities on market access, the major sticking point in negotiations.

Last week, U.S. Trade Representative Rob Portman outlined his top priorities at the upcoming meeting saying Washington would be seeking ministers to reaffirm dates and make "some incremental progress" on key remaining issues including agricultural market access, industrial and services negotiations, as well as, demonstrating to developing countries their stake at global trade talks.

Washington has been under pressure from the EU to urge emerging developing countries to make movements on industrial tariffs and services.

The United States has proposed both groups of trading partners move in parallel to make progress on talks.

"They should move together," said Portman, urging the EU to advance its agricultural proposal to gain further market access and emerging developing countries like India and Brazil to move on industrial tariffs and services.

"At this point, where we are, unless the EU steps forward on agriculture, emerging developing countries including India and Brazil and others will not step forward on industrial tariffs and services, and the United States, frankly, will not be able to deliver on its proposal regarding subsidies with the conditionality expressed in our agreement," Portman said.

Mandelson in Berlin called for intensive bilateral talks to resolve remaining issues. The EU trade chief is expected to be meeting with his U.S. counterpart during this week's economic summit.

The United States and the EU have been at odds how to break the impasse in trade talks, but Washington indicated last week negotiators have developed "an understanding of what the ultimate bargain could be now."

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