MercoPress. South Atlantic News Agency

Lafer in Buenos Aires

Newly appointed Brazilian Foreign Affairs Minister Celso Lafer begins this Monday in Buenos Aires a crucial visit to Mercosur members, particularly to co-ordinate efforts for the coming April presidential summit in Quebec, Canada, the first of the Bush administration.

However Mr. Lafer arrives at a very special moment since Brazil is involved in a full diplomatic conflict with Canada, after Ottawa decided to suspend Brazilian beef imports alleging precautionary measures regarding BSE, and "mad cow" world scare.

Besides considering the Canadian decision "scientifically nonsense", Brazilian president Henrique Cardoso has given Canadians three weeks to review their position, "if not, ? we will be involved in a full scale trade war".

The conflict could jeopardize the coming Quebec summit when supposedly the all Americas Free Trade Association, AFTA, talks are expected to resume, following President's Bush special interest, but to which Brazilians are opposed in agenda timing. Brazil wants a previous US commitment to open markets, particularly regarding agriculture, before sitting down to talk on any other issue.

Therefore Mr. Lafer besides visiting old friends, (he's considered the most pro Argentine of recent Brazilian Foreign Affairs ministers), will try to round up support for the conflict with Canada plus a clear Mercosur consensus for the Quebec meeting.

However Mr. Lafer will have to address other more "mundane" problems such as bilateral trade disputes with Argentina regarding dairy produce, poultry, rice, footwear, and other industrial products. Besides the fact that the Brazilian currency has again been loosing ground against the dollar, making Brazilian products cheaper, which sends jitters to Mercosur partners.

Monday mid afternoon Mr. Lafer flies to Montevideo to meet Uruguayan president Jorge Batlle and Tuesday should be in Asunción, Paraguay, the fourth full member of Mercosur that currently chairs the group.