MercoPress. South Atlantic News Agency

EU-Mercosur agree to keep talking

The European Union and Mercosur agreed last Friday in Brussels to continue advancing in negotiations to open markets improving product liberalization lists and the exchange of proposals in services and investments.

During the ninth round of negotiations and for the first time, the new products liberalization lists exchanged at the beginning of March were jointly addressed in Brussels in the framework of the establishment of a free trade area between both blocks. These specific negotiations began in 2000, and the following round was agreed would take place next June in Asunción, the capital of Paraguay, Mercosur chair country member during the first half of 2003.

Both blocks now have a month beginning next April 15 for specific requests regarding the products liberalization proposals.

Mercosur chief negotiator and Paraguay's Deputy Minister of Economy Rigoberto Gauto said that Mercosur is still waiting EU proposals regarding those areas "where we're highly competitive such as farming and agro-business, which have not been laid down on the table, and we expect them, if negotiations are to continue".

EU presented a first list in 2001 including the liberalization of 91% of all products it purchases from Mercosur, and did a further extension 0,5% last March. However, Brussels insists in keeping import quotas for beef, grains, sugar, rice, olive oil, diary products and tobacco from Mercosur and even when willing to enlarge quotas and grant them preferential tariffs they "must not represent a competitive threat for European agriculture".

Karl Falkenberg, chief EU negotiator admitted that Europe still has to explain how it will proceed in these fields, but will be waiting specific requests from Mercosur. However Mr. Falkenberg also pointed out that both positions are not symmetrical since Mercosur is proposing the liberalization of 83,5% of all products imported from the European Union.

"Mercosur's idea is to immediately liberate 10% of bilateral trade, and then proceed with another 66%. The EU is offering an immediate 60% liberalization with ten years for the remaining 10", indicated Mr. Falkenberg.