MercoPress. South Atlantic News Agency

Mexico closer to Mercosur

México will propose Mercosur a free trade agreement in the coming months according to Mexican Trade Representative Fernando de Mateo.

During this week's visit to Brazil Mr. De Mateo said the agreement is quiet advanced since Mexico has bilateral agreements with most members of Mercosur.

"With Uruguay we have a preferential tariff agreement that covers almost 90% of our bilateral trade. We have similar deals with Paraguay and Argentina, and we are looking forward to a tariff reduction agreement with Brazil in the second half of the year".

Mr. De Mateo indicated that Brazil and Mexico, after three long years of discussions, are close to a 30% import tariff reduction in almost 800 products, although "we're having some difficulties with the chemical industry, since Brazilians are reluctant to open their market".

"So once we've signed with Brazil there should be no impediment for an agreement with the whole Mercosur block", added Mr. De Mateo.

Brazil and Mexico already have a working agreement in the automobile industry with a 2006 target when markets should be completely open.