MercoPress. South Atlantic News Agency

South America News.

Mercosur-European Union talks

Crucial discussions leading to a possible agreement in mutual tariff reductions will be held as of this Monday in Brussels between Mercosur and European Union delegates. Representatives from Argentina, Brazil, Paraguay and Uruguay spent last week in Montevideo agreeing the document to consider with the Europeans who last July for the first time offered a specific timetable for the reduction of tariffs in bilateral trade, including agriculture, fisheries, industry, services besides investments. The European July tariff timetable covered almost 90% of bilateral trade in a ten years span. The initiative is seen as an attempt by the European Union to achieve an understanding before the World Trade Organization summit to be held in November in Qatar. Mercosur countries are particularly insistent that agriculture in a reasonable timetable must be included in the tariff reduction talks. Brazil's president Fernando Cardoso is currently in an official visit to France and Spain where he's trumping support for closer trade and investment links between Mercosur and the European Union.

"4+1" with Canada

Mercosur and Canada will attempt next month to establish trade talks in a similar 4 plus 1 format as exists with the United States. The idea is to revitalize a "consultation group" on trade and investment that was created during 1998, in the framework of a cooperation understanding between Canada and Mercosur as a group. Several of Mercosur members, including Chile have special bilateral agreements with Canada. The talks will take place in Montevideo next November 21st., with a Canadian delegation headed by Marc Lorie, Deputy Trade Minister. "We will begin by defining and establishing a formal negotiation agenda", said Mr. Elbio Rosselli, Uruguay's Director of the Integration and Mercosur Department.

Chilean objections

Chile since 1996 is an associate member of Mercosur and although the country participates actively in political affairs, it still is not a full member. This past week, in what seems an orchestrated campaign, Chilean columnists have written in several regional newspapers outlining some of the country's objections.