Tuesday, August 28th 2012 - 06:46 UTC

Europe waiting for Mercosur to overcome ‘Paraguay situation’ and resume trade talks

The European Commission remains “on hold” waiting for the evolution of events in Mercosur with the incorporation of Venezuela as full member and the suspension of Paraguay, before addressing a new round of association and trade negotiations.

De Gucht says EU prepared for a Mercosur with Venezuela, which adhered to free movement of goods and services in 2006

“There are no concrete elements which could indicate how the incorporation of Venezuela could impact on the negotiations’ dynamics”, said European Trade Commissioner Karel De Gucht questioned by a UK member of the European Parliament belonging to the group of European Conservatives and Reformists, Robert Sturdy.

De Gucht also underlined that “so far Venezuela has not made any public statements on the trade elements of the association agreement between Mercosur and the EU currently in course”.

The MEP was interested in knowing how Venezuela’s inclusion in Mercosur could impact on negotiations with the EU for a free trade agreement, “taking into account that Venezuela has been in the past deeply hostile towards trade liberalization”.

Venezuela last 31 July became full member of Mercosur thus joining Argentina, Brazil, Uruguay and Paraguay, currently suspended since the end of June following the removal of Fernando Lugo from the presidency of the country.  

The EC at the beginning of July made it clear, a few days before Venezuela was formalized as full member, which it would continue to negotiate an association agreement with Mercosur if President Hugo Chavez finally managed to formalize his country’s inclusion in the group.

De Gucht said he had taken note of Venezuela’s access and confirmed that the EC is waiting for the country to fully participate in negotiations between Mercosur and Europe. He also recalled that Venezuela was already associated to the process as an observer since the re-launching of negotiations in 2010, and underlined that the EU “only discusses with Mercosur as a region and not with individual member countries on a bilateral basis”.

MEP Sturdy also asked if the EC believes Venezuela would adhere to the (1991 Mercosur founding) Treaty of Asuncion principles in favour of free movement of goods, services and production factors among countries.

De Gucht said that the Venezuela/Mercosur access treaty dating back to 2006 already anticipated its adhesion to the Treaty of Asuncion as well as transition periods for the progressive integration of the country to the regional block.

“This applies mainly to the commercial dimension of Mercosur, particularly to the acceptance and adoption of a common external tariff and the free circulation of goods and services”, he added. And now this rests on Mercosur “to decide with how much precision to apply on transition elements and how it can update obsolete elements of the access treaty”.

The EC is expecting that the next round of negotiations for an association agreement with Mercosur, originally scheduled for last July but postponed because of the political situation in Paraguay, can take place sometime this coming southern spring.

Overall EU/Mercosur negotiations which resumed in 2004 following several frustrated attempts advance at a very slow pace, especially those referred to trade.
 

12 comments Feed

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1 Happyer (#) Aug 28th, 2012 - 07:44 am Report abuse
Hello redaction, can you please correct the name of the Belgian European Commissioner. It is Karel De Gucht like in your tags. Thank you.
2 ManRod (#) Aug 28th, 2012 - 08:43 am Report abuse
right, freeze the ties and all agreements with Mercosur, until original and lawful status is being reverted back according to international law. Means: Unban Paraguay, which was separated without legal justification and then vote again, this time under the original rules of the Mercosur, if Venezuela is being accepted by ALL Mercosur members.
Unless this does not happen, Mercosur can't be seen as a serious international entity, but only a inconsistent joke...
3 DanyBerger (#) Aug 28th, 2012 - 09:21 am Report abuse
It's not a case of doing what's right
It's just the way I feel that matters
Tell me I'm wrong
I don't really careeeerr

It's not a case of share and share alike
I take what I require
I don't understand ...
You say it's not fair

You expect me to act
Like a lover
Consider my moves
And deserve the reward
To hold you in my arms
And wait
And wait
And wait
For something to happen...

www.youtube.com/watch?v=gkehf2JjoVQ
4 vestias (#) Aug 28th, 2012 - 10:07 am
Comment removed by the editor.
5 British_Kirchnerist (#) Aug 28th, 2012 - 12:38 pm Report abuse
These talks hardly seemed to be steaming ahead before the Paraguay situation erupted, if they “resumed” in 2004! I predict the Paraguay sitaution will be solved by a fair election won by the left, or exacerbated by a rigged election won by the oligarchy, and these talks will still be dragging on at a snails pace
6 ChrisR (#) Aug 28th, 2012 - 12:38 pm Report abuse
12 years so far without an agreement if I remember correctly.

So what makes anybody think this delay is important?

The way Mercosur 'operate' it will be another 12 years before an agreement is signed.
7 Captain Poppy (#) Aug 28th, 2012 - 12:43 pm Report abuse
I wonder if this “irks” mercosur, that EU is applying mercosur standards to mercosur. lol
8 Guzz (#) Aug 28th, 2012 - 01:03 pm Report abuse
7
Not at all, I'd go for a total trade stop until Paraguayan elections, lets see whom it affects the most :)
9 Englander (#) Aug 28th, 2012 - 01:58 pm Report abuse
If I was Mercosur I'd tell the EU to take a run and jump.
10 Captain Poppy (#) Aug 28th, 2012 - 02:30 pm Report abuse
12 years without one must be killing the free world.
11 Britworker (#) Aug 28th, 2012 - 06:38 pm Report abuse
Asia is where the UK are building their trade efforts, South America is a dead loss with the exception of Brazil. Too much corruption. deceitful governments and dictatorships. I don't think there is a single thing Argentina produces that I could happily do without or source elsewhere. Interested to see how the Paraguayan situation pans out, how can they hope to be works class trading block when they are so deceitful and underhand with each other.
12 BAMF Paraguay (#) Aug 28th, 2012 - 09:22 pm Report abuse
#5 BK-

“or exacerbated by a rigged election won by the oligarchy”

The Colorado Party openly handed power over to the radical leftest Lugo when he won the last elections. There were no street protests like you see in so many other democracies, simply the transfer of power from one party to another. Even when the dictatorship fell there was no crazy bloodshed. Strossner was forced out and a couple years later elections were held. No problems at all. Somehow Paraguay has managed to have open and free elections since the first in 92; how I have no clue.

Watch the “free” elections that Hugo, Evo, and CFK are going to have. There will be massive protesting in each country and endless reports of election fraud. Yet you will say it is okay.

I have no clue why you are such a socialist douche bag. For Christ's sake stop wanting to take from others so that you can live without working. Don't you understand that socialism affects the poor the most? Jobs go elsewhere because it isn't profitable. Things become more expensive because the tax on companies is passed on to the customers. SOCIALISM DOESN'T WORK; or better it only works until the money runs out.

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