France warns of EU risk to WTO deal

By William Schomberg

GENEVA (Reuters) - France warned on Monday that some European Union countries might block a final global trade deal unless the EU gets better terms, another headache for EU trade chief Peter Mandelson in the deadlocked negotiations.

"The risk exists that on this current basis there might not be unanimity in the European Council of ministers next year on a final agreement," French Agriculture Minister Michel Barnier told Reuters. "At the end of the road, we will need unanimity."

Asked whether France would use its power of veto to block a final deal, Barnier said: "I did not use that word."

France is one of nine EU member states -- a third of the total -- that on Monday formed an alliance to push for a better terms from the Geneva talks.

They have been going on for more than a week as countries try to salvage the seven-year-old Doha trade round.

France is Europe's biggest food producer and has been the most vocal defender of its huge farm subsidies and import tariffs. President Nicolas Sarkozy has warned Paris will not accept a deal if it offers too many agricultural concessions.

EU trade matters can be settled by a qualified majority of member states but in practice the bloc's acceptance of a global trade deal could not be done over the wishes of big countries.

Barnier said in an interview that France wanted a "balanced and reciprocal" WTO deal but that was not on the table.