Friday, August 1st 2014 - 09:10 UTC

Mercosur finally agrees on joint trade proposal to exchange with the EU

Mercosur members finally agreed this week on a draft joint proposal to be presented to the European Union with the purpose of negotiating a long delayed trade and cooperation agreement with EU, according to Uruguayan diplomatic sources.

 The family picture in Caracas next to the statue of Bolivar

“After several hours discussions, well into midnight the four members, Argentina, Brazil, Paraguay and Uruguay have concluded the tariffs' reduction proposal to be exchanged with the EU in the near future”, said the sources indicating that Mercosur now must wait for the EU 'move'.

“Most certainly the discussions will become more intense once Brazil takes the chair of Mercosur, since in Brazil industry, agriculture and the governments are fully committed to a trade agreement with the EU”.

The chair for the next six months is held by Argentina, which has been reluctant or dragged its feet in elaborating the proposal since the government of President Cristina Fernandez is involved in a policy promoting 'manufacturing' and looking after Argentine jobs.

EU sources in Montevideo said they were aware that Mercosur had, after long laborious efforts in Caracas, far from the spotlights, reached an agreement on a proposal, “but so far had not been officially informed”

“Once Brussels receives the Mercosur proposal, EU already has its own list elaborated by different institutions, and a vote will be taken among member states” said the source. However since it can be a long process and in August everybody goes on vacation, “it might take longer”.

Likewise the fact that both sides have finally concluded the proposals to be exchanged does not mean a deal has been reached. “it's a crucial point of negotiations, but not the last; the next step is for both sides to agree on a date for the exchange of proposals”.

Originally the exchange of proposals was to take place last December, but a postponement was agreed so that all countries involved could have the chance to present their own initiatives for liberalizing trade in goods and services. Hopefully the most ambitious possible.

Mercosur had fixed itself a target of liberalizing a 90% range of goods and services, but it found obstacles and delays from Argentina which offered a limited list in the chapter of goods, and refused to work on the services and government procurement chapters.

But fortunately during the first half of the year, Argentina became more flexible in the different technical teams working in Mercosur and it was possible to reach an only position and only proposal, during this week's Caracas summit.

Although Venezuela is a full member of Mercosur, and Bolivia is in the process of incorporation, none of the two have been part of the deal, at this stage, since talks between the four founding members and the EU, have been going on and off since 1999, and finally launched with greater emphasis in 2010. Venezuela only joined in 2012 and still has to complete with Mercosur rules, regulations, and resolutions.

13 comments Feed

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1 Brasileiro (#) Aug 01st, 2014 - 10:37 am Report abuse
Waste of time!

Why we do not first liberalize trade among BRICS?
2 cornelius (#) Aug 01st, 2014 - 10:43 am Report abuse
Brasileiro as usual you are a moron with tow legs the brics do not need or want brazil a soon to be communist country.
3 Idlehands (#) Aug 01st, 2014 - 10:56 am Report abuse
Mercosur needs to liberalis trade among itself before it makes plans outside the zone. It is a dysfunctional organisation that was created as a free trade zone and has been hijacked to become a political talking shop instead.
4 ChrisR (#) Aug 01st, 2014 - 11:07 am Report abuse
Stunning photograph:
The horse looks frightened by what it sees;
Bolivar just looks pissed at them;
“No Money Pepe” looks like the confused old drunk that he is;
MADuro looks like he is giving the RC forehead, tit, tit and bollocks blessing;
TMBOA looks like she is 'waving goodbye' if only;
The guy from Paraguay has porked up a bit;
While the Cowpat just looks his confused self as he mouths WTF am I doing here, a question he should be told the answer to: nothing so FO.

15 years and counting and it's not over yet folks!
5 Brasileiro (#) Aug 01st, 2014 - 01:04 pm Report abuse
cornelius, the “B” of the BRICS means South America. Therefore, the size of Western dissent is much larger than your imagination.
6 redp0ll (#) Aug 01st, 2014 - 01:20 pm Report abuse
Recommend a)you take a one way trip to a taxidermist
b) take your opinions with you as cheap stuffing.
7 Idlehands (#) Aug 01st, 2014 - 01:24 pm Report abuse
5 Brasileiro

““B” of the BRICS means South America”

No it doesn't. Brazil operates within BRICS out of its own self interest not on behalf of South America.
8 Brasileiro (#) Aug 01st, 2014 - 02:41 pm Report abuse
Little people, filth ..... I leave a beautiful video that talks about love!
9 Tik Tok (#) Aug 01st, 2014 - 03:53 pm Report abuse
@8 Brasil is going backwards, in recession and you cling to your ideology. Brazil needs to integrate its economy with world trade rules and standards and improve effciency. However it will never get there unless it breaks the shackles of this Mercosur agreement, Argentina ties a millstone round Brazil's neck and the socialists in Brazil are too dumb/indoctrinated/scared to break away due to some sort of illusion that they have that they must stand by their socialist brothers. Brazil is heading the way of Argentina as an economy, i.e. a failure.
10 golfcronie (#) Aug 01st, 2014 - 06:45 pm Report abuse
Seriously, why would The EU want anything to do with Latam countries, personally I don't see anything advantageous to us that would warrant a deal with 3rd World countries.
11 Briton (#) Aug 01st, 2014 - 08:00 pm Report abuse
With her in the picture,,,,no chance.
12 golfcronie (#) Aug 01st, 2014 - 09:50 pm Report abuse
End of week quiz. Which of the above has not got terrorist qualifications?
13 ilsen (#) Aug 02nd, 2014 - 01:54 pm Report abuse
Wow! So they have agreed on a proposal finally. Whoo-hoo!
Still a long way from an actual deal. I imagine it will come back from Brussels looking like a particular incompetent naughty child's homework. Big red lines through most of it. “You need to pay more attention in class and not be distracted by your mates squabbling in the sandpit”
PS: Please remind your mother to pay this term's lunch money, and we note that last year's fees are still in arrears.

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