"I don't think compenstation does that job," he told members of the European Parliament. "The U.S. has so far opted for compensation to make right what is wrong,"
EU and other trading partners have been in talks with the U.S.'s over Washington D.C.'s faulty decision to retroactively remove gambling services from commitments it made as part of a 1994 world trade agreement.
"I know as well as anyone that these questions are highly politically charged," Mandelson said.
Highly-placed sources said the leaders of France and Italy and the president of Poland wrote recently to European Commission President Jose Manuel Barroso expressing their concerns about the plans. Germany and Spain are also against the proposed American settlement.
Mandelson is a high-profile trade figure. He launched a review of the EU's trade defense rules last year, wondering if they needed to be updated to reflect the way many European companies have invested in manufacturing in countries such as China.
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Trade Remarks
He had been due to present his ideas to fellow commissioners early next month, but came out earlier than planned, this week with this remarks on the U.S.Mandelson said there was broad support for some changes to the trade rules, including making the system more transparent.
But, Mandelson said, on fundamental issues, such as redefining what is a "European company" in an age of offshore production, European business and governments are deeply divided.
"To avoid misunderstanding and controversy, it is necessary to provide draft guideline texts alongside the Commission's proposals for change so people can see immediately and with complete clarity what we propose to do," he said. "That would require a little more time."
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