Early pact forecast for EU

The European Union is unlikely to stand in the way of the Sino-US World Trade Organisation package agreed earlier this week.

Officials at the European Commission are still awaiting the full details of the accord, and privately there is some concern majority-ownership has not been achieved in key areas such as telecommunications and life insurance, but the economic significance of the deal means it is too important to delay.

Aside from the EU and Canada, there are 22 countries still seeking bilateral deals with the mainland, in addition to 13 that have already reached agreement. However, many of these are only seeking individual product agreements.

Sources say the EU similarly has specific product areas in agriculture and spirits that may need attention before a signing takes place but most observers believe Brussels should complete its negotiations with Beijing before the EU-China Summit around December 21.

'We, like the US, would have liked to get majority ownership in telecoms, instead of the 49-50 per cent. But the Americans have probably spilt a lot of blood over that already,' one EU source said.

A negotiator for the EU added the Sino-US package needed to be balanced to reflect wider interests.