MercoPress. South Atlantic News Agency

Mercosur's proposal.Mexico-Brazil talks.

Mercosur's proposal

Mercosur presented this Monday in Brussels its tariff dismantling proposal extensive to a third of the bilateral trade exchange with the European Union, in the framework of a free trade, cooperation and political dialogue agreement between both blocks. "Our proposal actually covers the whole tariff universe", said Uruguayan Foreign Affairs Under Secretary Guillermo Valles in Brussels. Mercosur's proposal for the 33% overall trade is programmed in three stages, 8 and 10 years for five different categories, and the rest for joint negotiation. "But above all the proposal has a strong political component, since Mercosur is expressing its political willingness for an interregional association that includes trade liberalization", stressed Mr. Valles. Regarding agriculture, Mr. Valles said the proposal is to liberalize 40% of the European Union 1998/2000 average farm imports from Mercosur. The European Union is expected to benefit with lower tariffs in several industrial sectors. Mr. Valles said that Mercosur's proposal is very "transparent", basically eliminating all ad valorem tariffs. However, Mercosur's proposal is conditioned to the elimination of trade impediments such as "export and farm subsidies, access reference prices and sanitary measures".The next round of talks is scheduled in Buenos Aires next January.

Mexico-Brazil talks

Mexico is preparing to enter a trade agreement with Brazil either bilaterally or through Mercosur according to Fernando de Mateo, Mexico's trade negotiations coordinator currently in Sao Pablo. Mexico has bilateral trade agreements with Mercosur member countries, Paraguay, Argentina and Uruguay, and with Brazil it's only extensive to the automotive industry. "We are willing to carry out full negotiations with Brazil", said Mr. de Mateo. However Brazilian officials have pointed out that the country is willing to reach a trade agreement with Mexico but in the framework of Mercosur, rather than bilaterally. Talks are taking place at a very special moment for both countries since Mexico is expected to overtake Brazil as the leading economy in Latinamerica. The current devaluation of the Brazilian currency