MercoPress. South Atlantic News Agency

Revived EU-Mercosur optimism

Fresh trade negotiations between Mercosur and the European Union could lead to a framework agreement by next May in time for the EU-Latinamerica summit in Mexico, according to External Relations Commissioner Chris Patten.

"While there are some very difficult issues which we have to resolve, I think it's possible for us to reach an agreement; there's very strong sense on both sides that the agreement makes enormous political and economic sense", said Mr. Patten during a joint press conference in Brasilia with Brazilian Foreign Affairs minister Celso Amorim. Earlier in the day Mr. Patten met with Brazilian president Lula da Silva.

The third EU-Latinamerica and Caribbean summit is scheduled May 28,29 in Guadalajara.

Last November in Brussels, EU and Mercosur committed themselves to reach a full free trade agreement by October 2004.

Mr. Patten said that the political and cooperation chapters are almost concluded "but we still face some difficulties regarding trade which is not surprising".

According to the agreed timetable, the two groups will be meeting next month in Buenos Aires and later in Brussels in April, when the crucial issue of access to agriculture markets will be on the table. A more flexible EU attitude in the matter which is one of Mercosur main interests has improved the negotiation climate.

"This is much more than a trade accord, it has a strategic objective", said Brazilian minister Celso Amorim. "We give enormous priority to the EU. Our strong cultural relationship and political affinity lead us to give this accord a high priority".

However negotiations still face important obstacles. The EU is not entirely convinced about further concessions in agriculture and Mercosur is hesitant in going beyond commitments it made to United States regarding transparency on government procurement.

"We can't make proposals on agricultural access and then be expected to make them again in the Doha WTO round", warned Mr. Patten.

Mercosur is also currently involved in trade negotiations with United States for the creation of a Free Trade Association of the Americans that should be completed by January 2005. India also figures in the agenda, a country which President Lula da Silva will be visiting this month expecting to sign a Preferences Agreement that includes a combined list of 1,800 products.

The EU External Relations Commissioner left for Colombia and Ecuador after signing bilateral scientific and technological cooperation agreements with his Brazilian counterpart.