The European Union is looking to increase import quotas on Chinese garlic and mushrooms to compensate for potential losses when 10 new member countries join the union in May and adopt its import rules, a top EU official said Monday in Shanghai.

"We are waiting for the Chinese side to provide details on the size of its trade in garlic and mushrooms with the new EU members to serve as a basis for talks on how much compensation China is entitled to," said Franz Fischler, EU Commissioner for Agriculture, Rural Development and Fisheries.

"We would add to the existing quota an additional interim quota," he said. "Preferably we will be able to sort out the problem before May 1."

Once they join the union, the 10 new members, most eastern European nations such as Poland, Hungary and the Czech Republic, will be forced to raise their tariffs on garlic and mushrooms to meet EU trading rules, which is expected to affect Chinese exports to their markets, Fischler said.

With only five weeks to go before enlargement, there may not be enough time to conclude detailed talks on compensation for China and the extra quotas will act as a preliminary measure to satisfy Beijing, he added.

The EU promises to guarantee the future trade flow and connections between China and the 10 upcoming EU member states, he said.

Fischler said he foresees "significant increases in farm goods trade in both directions" in the coming years as both markets have huge potential to tap.

The EU is seeking more access to increasingly affluent Chinese consumers who need more high-quality, branded farm products such as wines, cheese, olive oil, ham and other typical European products, he said.

On the other hand, the EU will import more seafood, garlic and mushrooms from China.

"There are 13,000 Chinese restaurants in the European Union, and the number is set to grow every day," said Fischler. "They are sure to import a lot of Chinese food."

"Sino-EU trade development is going positively at the moment, and there's room to increase the trade volume," he said.

Fischler, along with 25 European agricultural good producers from 13 EU countries arrived in Beijing last Thursday and met with China's Vice Premier Hui Liangyu, Minister of Commerce Bo Xilai, and other top government officials, seeking to improve trade partnerships.

He will address the opening ceremony of "Tasty Europe," a trade show featuring European food and beverages, which opens today.

The fair will run through Thursday at Shanghai New International Expo Center.

Chinese exports to the EU totaled US$72 billion last year, while the country only exported US$6 billion worth of good to the 10 new member countries.

(Shanghai Daily March 30, 2004)