MercoPress. South Atlantic News Agency

First Mercosur-USA talks

A hectic week for the Mercosur-United States trade talks scheduled to officially begin next September 21st., when the four Foreign Secretaries (Argentina, Brazil, Paraguay and Uruguay) will be meeting US Trade Representative Robert Zoellick.

Over the weekend all four officials are expected to talk informally in Mexico City with Mr. Zoellick during a preparatory meeting for the World Trade Organization Qatar summit.

The following Tuesday, Mr. Celso Lafer, from Brazil, Mr. Rodríguez Giavarini from Argentina, Antonio Moreno Ruffinelli from Paraguay and host Didier Opperti will be meeting again with Mr. Zoellick, --and US Agriculture Secretary Ann Veneman--, but in the framework of the Cairns Group that will be discussing agriculture affairs in Punta del Este, Uruguay.

The Cairns Group, formed by non subsidized agriculture exporting countries, among which Australia and New Zeland, is expected to condition strongly its participation to the inclusion of agriculture in the WTO Qatar summit agenda.

However the "four plus one" talks as the Mercosur-USA round is also identified, will officially take place in Washington, and there could be surprises.

While the US is gradually moving towards a recession, Mercosur full members and Chile have been severely influenced by the Argentine situation and declining economic prospects.

The Bush administration as its antecessor has been unable so far to obtain the "fast track" from Congress but is needing new markets to boost exports. Argentina and Uruguay, suffering from several years recession, are forced to look for other trade options, and Brazil that has always been suspicious of US intentions now has less leeway for its reluctance. Chile has always been an advocate, --but frustrated--, of closer ties with Washington.

In this new landscape the "four plus one" could be needing each other, but will also have safeguards to fall back on to.

"I've no doubt about (Brazilian) president Cardoso's conviction, or Mr. Lafer's positive attitude, however we all know each country has its own national interests and we must pay special attention to that", said Argentina's Foreign Secretary summing up the picture.