MercoPress. South Atlantic News Agency

Brazil proposes new FTAA calendar.

Brazil will be defining a “new calendar” for the Free Trade Association of the Americas, FTAA, talks, to replace the current timetable that anticipates the signing of an agreement by the end of 2005.

"We're going to define a new calendar after the next FTAA trade meeting to the held in July in El Salvador", said Brazilian Deputy Minister for South American Affairs, Luiz Felipe Macedo Soares.

Mr. Macedo Soares announcement occurs just two days before the arrival in Brazil of Robert Zoellik US Trade Representative who comes with the purpose of ironing out some of the difficulties arising from the current talks.

The Brazilian official stressed that the FTAA talks haven't "advanced much so far", because they are "so ample" and "our own delays following the change of government last January" when Mr. Lula da Silva took office.

"Furthermore we want to see how we can proceed with negotiations, if the timetable is feasible. This will be considered in the FTAA Miami meeting scheduled this year and with Mr. Zoellik", stressed Mr. Macedo Soares recalling that US market access for agricultural exports, mainly from Mercosur, and the definition of "compensation mechanisms" to reduce the gap between the US and Latinamerican economies are two crucial points to be addressed.

"How can we make a union function smoothly when it's made up of 34 different countries? Even the European Union has a compensation fund", said Mr. Macedo Soares. Brazil also refuses to accept the US position of excluding agriculture of FTAA negotiations and leaving them for the more "diluted" World Trade Organization rounds.

"We can't sign any agreement that leaves agriculture out. It would be a terrible disadvantage for Brazilian economic development. I'd say a senseless attitude", indicated Mr. Macedo Soares.