MercoPress. South Atlantic News Agency

Argentina and Brazil confirm Mercosur

Argentina and Brazil confirm Mercosur

Presidents of Argentina and Brazil, Fernando De la Rúa and Fernando Cardoso confirmed their countries commitment with Mercosur and pledged to keep working for a strong customs union.

After sharing lunch in Brasilia, Mr. Cardoso said "there was no stepping back or yielding. We are advancing and progressing together, and committed to build Mercosur together with Uruguay, Paraguay and associates Bolivia and Chile".The meeting decided last Sunday was an initiative from President De la Rúa in an attempt to cool tempers following the serious exchange between both countries regarding monetary policy, tariffs and trade.

"Mercosur problems are solved with more Mercosur, with a greater integration, when we share a common currency and our borders open up to a greater exchange and participation", said Mr. De la Rúa.

However, politeness aside, the irritating problems, the common external tariff, AEC, the constant depreciation of the Brazilian currency and Argentina's exchange rate fixed to the US dollar, plus the debate over downgrading Mercosur from a customs union to a common market were left for the Finance, Trade and Foreign Affairs ministers and Central Bank presidents of both countries that are holding a round of deliberations in Sao Paulo.

Mercosur and particularly Argentine and Brazilian ministers accept their responsibility in unilateral acts of "AEC drilling". Discussions are now concentrating on whether to react to reality and "suspend" AEC, and for how long, or simply eliminate it and target a common market.