PARIS, May 16 (Reuters) - French oilseeds and protein producers onThursday condemned the new U.S. farm bill boosting crop and dairysubsidies and urged the European Commission to fight back, possibly withinthe World Trade Organisation (WTO)."The new U.S. farm law is totally blameworthy because it totally floutsthe commitments made at the WTO," Xavier Beulin, President of the Frenchoilseeds and protein growers' group FOP told Reuters at the margin of itsannual congress in Paris."It's not the moment for the European Union to drop its guard," headded.U.S. President George W. Bush on Monday signed a six-year law boostingcrop and dairy subsidies by 67 percent, adding an estimated $6.4 billion ayear to farm spending and marking a further retreat from free-marketreforms begun in 1985.The fatter subsidies will become available at harvest -- just weeksaway for the drought withered winter wheat crop.The FOP said it was shocked the U.S. farm bill incorporatedmarketing loans which in its view are against international trade rulesand should be challenged at the WTO.Beulin said that the European Oilseeds Association (EOA), that heheads, would soon lodge a complaint called 'regulation for trade obstacle'to the Commission on the U.S marketing loans for soybeans growers.The lobby's complaint could speed up action at EU level as it wouldforce the EU executive to give, within a short period of time, its opinionon the rightfulness of launching a panel at the WTO on the perverseeffects of the soybeans marketing loans.

NO LIBERTY, EQUALITY, FRATERNITYFOP's request for a stronger fight against U.S. farm policy, especiallyin the oilseeds sector, was echoed by its British and German counterparts,invited to the congress."It's high time that the Commission shows strong leadership andchallenges the United States in the WTO, and challenges it now," said RadThomas, president of the oilseeds section of the British National FarmersUnion (NFU)."At the moment in the agriculture world, there is no liberty, equalitynor fraternity," he added, referring to the French revolution values.Klaus Kliem, President of the German oilseeds promotion group UFOPcalled on the Commission to use the coming review of EU farm policy toraise payments to the oilseeds producers in answer to the U.S. farmsubsidy law."We call on the Commission to take account of this (the U.S. farm bill)when it will make its mid-term review proposals and to decide newsubventions for the oilseeds and protein sector," he told participants inthe congress.

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