India, Brazil responsible for collapse of Potsdam talks: US Trade representative

Potsdam: India and Brazil''s fear of growing Chinese imports was behind their decision to help prompt the collapse on Thursday of the G4 trade talks in Potsdam, said Susan Schwab, the US trade representative, has said in an interview with the FT.

Schwab said she was also surprised by India and Brazil''s "rigid" negotiating positions, remarking that Kamal Nath and Ceslo Amorim, the Indian and Brazilian trade ministers, were less flexible in their offers on their manufacturing tariffs at Potsdam than at previous negotiations.

Schwab also said that the collapse of the Potsdam talks could have positive as well as negative effects on Capitol Hill, which has undertaken a more hawkish stance towards China over the last few months.

Schwab faces a tough time ahead persuading the US Congress to renew the Bush administration''s fast-track trade negotiating authority, which expires next week.