MercoPress. South Atlantic News Agency

EU optimistic about agreement with Mercosur

The European Union trusts it can reach and sign an association agreement with Mercosur next May 28/29 during the EU-Latinamerica presidential summit to be held in Mexico, according to Alberto Navarro, EU ambassador in Brazil.

"We have a timetable to define the agreement extending to October, however it would be great if we could sign it in Guadalajara", indicated Ambassador Navarro during a meeting with journalists in Brasilia.

Mr. Navarro recalled that leading to Guadalajara there will be two decisive previous meetings, in Buenos Aires in March and in Brussels in April with the purpose of advancing in the free trade agenda.

In Buenos Aires, from March 8 to 12, the two sides will be basically defining concessions in the framework of the future agreement and those that will remain for the World Trade Organization, WTO.

"We've already notified that the EU has an only pocket, we're not going to pay twice, in the free trade area and then again in WTO", highlighted Mr. Navarro.

However the EU representative admitted it was understandable that "Mercosur, before accepting quotas in any sector, would want to know the volume of those quotas. But until April we will not have definitive and precise figures".

"In April EU will be announcing its new improved agriculture proposal", one of the key issues of the ongoing negotiations.

Nevertheless Ambassador Navarro pointed out that what really matters is "the political willingness to reach and conclude an agreement. Trade between the EU and Mercosur is already expanding without an agreement, and will do even more once we've signed".

Mr. Navarro underlined that 2004 will be a significant year for the European Union and its relations with Mercosur.

"This year the EU will experience the greatest expansion of its history with the incorporation of ten new members, but this does not mean we will not forget Latinamerica". "Next May in Guadalajara, Mexico, we'll see the first official meeting with the participation of the ten new EU members", stressed Mr. Navarro.

For Mr. Navarro discussions with Brussels will not interfere or affect negatively the other set of negotiations for the creation of a Free Trade Association of the Americas sponsored by the US.

"On the contrary, in the event of an agreement with Europe, Brazil and Mercosur will see their standing in FTAA strengthened. If I was Brazilian I would like to have the EU agreement solved while I'm negotiating FTAA".

During the first EU-Latinamerica summit in 1999 it was decided to begin negotiations for an association agreement, including free trade area, cooperation and consolidation of political dialogue.