MercoPress. South Atlantic News Agency

Full support for Argentina.

Mercosur presidents meeting in Lima, Peru, expressed their full support to the Argentine administration of President Fernando De la Rúa and its zero-deficit target.

"The consolidation of the Argentine situation will be the starting point for a renewed Mercosur stabilisation effort in the region", said Uruguayan president Jorge Batlle after the summit.

Presidents from Argentina, Brazil, Paraguay, Chile and Uruguay were present over the weekend in Peru for the inauguration of President Alejandro Toledo. Once Argentine Congress approves the austerity measures the Mercosur Council, with the participation of Foreign Affairs and Economy ministers from country members, is scheduled to meet in Montevideo.

"We're going to review the situation inwards since Mercosur has coming talks with the Andean Community, the European Union and United States", indicated president Batlle, speaking for the group since Uruguay holds the chair for the current semester.

Mercosur and the Andean Community are expected to converge into a common trade area by January 2002. Besides before next October 31st., Mercosur has to reply tariff reduction proposals from the European Union.

"We need an in depth and detailed analysis of the European proposal since agriculture is still subject to a quota system, with which Mercosur openly disagrees", stressed president Batlle.

Mercosur presidents held a meeting with US Trade Representative Robert Zoellick who was in Lima for Mr. Toledo's taking office. Mr. Batlle also recalled Mercosur members had agreed last June to invite Russian president Vladimir Putin to the Montevideo presidential summit.