MercoPress, en Español

Montevideo, October 16th 2018 - 19:22 UTC

Brazil disappointed with Argentina's 'lack of ambition' in reaching trade accord with EU

Saturday, June 21st 2014 - 09:04 UTC
Full article 111 comments
The administration of Cristina Fernandez wants a seven year grace before reducing some tariffs  The administration of Cristina Fernandez wants a seven year grace before reducing some tariffs

Argentina and Brazil have again clashed not over football but over trade and Mercosur according to the Sao Paulo media. Brazil believes there is “a lack of ambition from Argentina” to finish polishing the proposal to be exchanged with the European Union for a much delayed cooperation and trade agreement.

 Allegedly Brazil given the situation has a B plan, with the support from junior members Paraguay and Uruguay, and this would include a tariffs' reduction chronogram different for each member of Mercosur or even a 'two-speeds' trade block.

The issue came to light again following the visit of EC vice-president Antonio Tajani who recently toured Mercosur countries and said that “the ball was now in the Mercosur pitch” and insisted on the significance that the agreement has for the EU, “despite all, Mercosur is the future”.

“We strongly favor the agreement but now the decision belongs to Mercosur and its own internal debate. Four different positions must be harmonized” said Tajani.

According to the Brazilian B plan “the flexibility would allow the administration of President Cristina Fernández to take more time and continue with its current policies promoting domestic industry and jobs”.

However Argentina objected arguing that the Brazilian proposal of a different 'rhythm' of tariff reductions inside Mercosur is “incompatible with the process of intensifying the block's integration”.

According to the Sao Paulo media the main fear of the Argentine government is to be displaced or left out from the Brazilian market with the arrival of more competitive goods from Europe.

“Argentina insists in a seven-year legal grace period before beginning to reduce tariffs on some imports. Under this option free trade among the two blocks, EU and Mercosur would only be reached in a 15 year-time period”, points out the Brazilian media.

However EU diplomatic sources said that “Argentina is well aware that the EU Mercosur agreement is important for them since they export more than they import and thus won't want to be left out. I'm optimistic that Argentina will ultimately join the wagon”.

Top Comments

Disclaimer & comment rules
  • reality check

    Disappointed, Jesus Christ how long have you shared a border with them? and your disappointed.

    Naive more like!

    Jun 21st, 2014 - 09:22 am 0
  • ilsen

    Argentina dragging its heels, delaying the ambitions of others.

    This is News?

    Jun 21st, 2014 - 10:19 am 0
  • yankeeboy

    Only necessary imports are allowed so they can't have a free trade agreement with the EU. There's no U$ to pay for anything!
    I said before Brazil will have to go at this alone and leave MercoSur or the other members will just ignore that they're breaking the rules to keep up the appearance of solidarity.

    Jun 21st, 2014 - 10:52 am 0
Read all comments

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!