MercoPress. South Atlantic News Agency

Argentina, Agriculture and Venezuela

In a joint declaration, Mercosur presidents currently holding talks in Brasilia made a strong statement demanding an end to subsidies by rich countries and a fairer agricultural trade policies.

It is imperative for developed countries "to substantially reduce domestic support, eliminate export subsidies and other instruments that distort world trade of agricultural commodities".

"The opening of markets particularly in agriculture is essential for the development of Mercosur", stressed the four full members of Mercosur, Argentina, Brazil, Paraguay and Uruguay, plus associate Bolivia and Chile during the block's two days presidential summit.

"The removal of barriers in agriculture trade will enable Mercosur members to achieve their social-economic development objectives", added the declaration.

The summit, the last to be hosted by outgoing Brazilian president Fernando Cardoso was actually more absorbed by his elected successor, Luiz Inacio da Silva from the opposition Workers Party and who will be at the helm of Latinamerica's largest economy for the next five years when vital trade discussions must be addressed.

"If Brazil grows, we all grow", Uruguayan president Jorge Batlle summarized the message to Mr. Lula.

Other issues in the meeting's agenda included the current deteriorating situation in Venezuela where a general strike against President Hugo Chavez and the lack of political dialogue, are threatening democratic institutions, plus the ongoing irritating struggle between Argentina and the International Monetary Fund, IMF.

Mercosur presidents are expected to give strong support to Argentina that is showing signs of a gradual recovery after the default and collapse of last December, besides requesting the IMF to finally extend the beleaguered Mercosur member financial assistance so it can face the coming presidential election in relative political and economic stability.

"It's a mistake the IMF is committing in not agreeing with Argentina that has achieved considerable progress in the last months. This stance is bound to damage IMF's image", said President Cardoso who is scheduled to receive IMF Director Manager Horst Köhler currently visiting several Latinamerican countries