MercoPress. South Atlantic News Agency

EU-Mercosur insist with trade agreement

European Union and Mercosur delegates participating in a business forum in Brasilia said they were confident that both regional blocks will reach a free trade agreement before 2005, even when differences subsist mainly in agriculture.

"I hope the people conducting these negotiations will reach an integration agreement before 2005", indicated Argentina's Minister of Interior, Anibal Fernandez insisting that the discussions leg of the process has concluded.

Mr. Fernández said both groups must now negotiate "product by product" in time to sign the agreement before the new members of the European Commission take office at the end of 2004.

"We're concerned that the new group of Commissars might not have the necessary information to give negotiations the necessary continuity which could delay integration", indicated Mr. Fernandez.

Alberto Navarro, EU representative in Brazil shared Mr. Fernández optimism and concern saying that "with a little bit of political will, there are big chances that the agreement can be signed on time".

The next Mercosur-EU ministerial talks are scheduled for November 12 in Brussels, and "we believe there will be progress", said Mr. Navarro.

However Karl Falkemberg, one of EU main trade negotiators stated that "Mercosur should treat its clients more fairly", since the EU absorbs 25% of Mercosur exports.

"For Mercosur it's vital that the EU presents a significant proposal in agriculture so we can express a commercial counter proposal", said Luiz Felipe de Macedo Soares Brazil's Foreign Affairs Under Secretary.

The Brazilian official indicated that the continuity of negotiations is closely linked to an agriculture proposal, even when the EU has admitted its willingness to increase agriculture purchasing in Mercosur.

Mr. Fernandez and Mr. de Macedo Soares underlined that "the EU will have to decide whether it's going to wait for the United States or they will proceed to join with Mercosur on their own timing".

The Mercosur delegates were referring to the United States sponsored Free Trade of the Americas Association, FTAA, which pretends an only market for the 34 hemispheric countries extending from Alaska to Tierra del Fuego that should become operational in 2005.