* Dutch seek tougher steps against child labour
* Call for product bans, withholding of trade privileges
BRUSSELS, May 10 (Reuters) - The Netherlands wants the European Union to adopt tougher steps against child labour, including bans on products and withholding of trade privileges on states that allow it, its foreign minister said on Monday.
He said more than 200 million children performed work that contravened international standards for child labour -- including forced labour, slavery, prostitution and drug trafficking -- and harmful and dangerous work.
"I believe the European Union should do more to combat child labour," Foreign Minister Maxime Verhagen told the European Parliament. "In order to be effective we need both carrots and a stick."
Verhagen cited a report by the EU's executive European Commission which called for better use of all available instruments, including political dialogue, development cooperation and trade measures to combat child labour.
He said he would call for an EU summit in June to make the issue a priority in the bloc's development programmes with third countries and to adopt a series of steps.
These included a certification scheme to promote corporate responsibility and clauses in EU public procurement contracts to oblige firms to show they comply with international standards.
He called for bans to be enforced on products involving the worst forms of child labour.
Diplomats and experts say child labour continues to thrive because of consumer demand for cheap products and many companies worry that they will lose competitive advantage if they are forced to comply with measures banning the practice. (Reporting by David Brunnstrom)