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updated 01:12, Wed September 12, 2007

President Waves Veto Threat if World Trade Accord Doesn't Serve France

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RENNES, France (AP) -- President Nicolas Sarkozy on Tuesday held out the threat of a veto if any accord reached within the World Trade Organization does not serve French interests.

"WTO negotiations must start again on a healthy basis and on clearer targets. I will firmly oppose any agreement that doesn't serve the interests of our country," Sarkozy said at the opening of an agriculture show in the western city of Rennes. "That's the mandate I have received."

"If Europe gives up defending its agriculture, its foodstuffs production ... if it refuses to act and is happy to give in when the U.S. Congress votes to continue with its subsidies, what is the point of having an agricultural policy?" Sarkozy said.

Faltering WTO talks resumed in Geneva last week on two new proposals to break a deadlock between rich and poor nations over how much to cut barriers in agricultural and industrial trade.

The French president also confirmed that he will open a discussion on the reform of the European Union's Common Agricultural Policy in the second half of 2008 when France takes over the EU presidency.

"The CAP as it exists today cannot respond to the challenges" of the future, Sarkozy said.

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