MercoPress. South Atlantic News Agency

Mercosur “is more vision than reality” claims EU

European Union and Mercosur representatives exchanged criticisms at the beginning of a round of talks in Buenos Aires that should lead to the completion of the Cooperation, Political and Trade agreement between both blocks in the coming months.

"Regional integration is important but sometimes it seems Mercosur is more vision than reality", said EU representative Karl Falkenberg adding ¿how can the EU trust Mercosur when Mercosur members don't trust each other".

Mr. Falkenberg attacked the lack of customs, sanitary and phytosanitary harmonic regulations in Mercosur and complained that an imported good from the EU can't circulate freely in the block.

"If the good is introduced in Santos, Brazil, it can't circulate freely in Argentina, Uruguay and Paraguay unless it pays the common external tariff in each of the three member countries. The same happens with goods Made in Mercosur", emphasized the EU representative.

Martín Redrado responding for Mercosur recalled that the Tribunal to solve trade disputes, proposed in early 2002, already has congressional approval in the four country members and Argentina and Uruguay have already named delegates.

Government procurement has been liberalized in the block and Argentina and Brazil have "a coordinated foreign exchange policy"

Mr. Falkenberg also criticized the non liberalization of services in Mercosur (financial, transport and telecommunications), stating "we would like to be allowed to operate in one country so we can then offer services to the other member countries".

Investment protections, government procurement, intellectual property, were also in the list of EU complaints arguing that "the EU only wants predictable, reliable rules of the game with no social, economic or fiscal discriminations".

However Mr. Redrado replied that if the EU has decided that the crucial issue of agricultural protectionism must be addressed in the Word Trade Organization round, "Mercosur is entitled to the same with those issues which interest the EU".

Finally Mr. Falkenberg underlined that 83% of the goods offered by the EU for tariff reduction will be immediately liberalized on becoming effective the agreement, while Mercosur's offer is only extensive to 70% of goods and in a ten year period.

But Mr. Redrado pointed out that half of the list of goods offered by the EU already enters the continent with zero tariffs.

Mercosur and the EU will be discussing this week in Buenos Aires the framework of rules for the trade agreement that should be ready for signing next October. The following bilateral meeting is scheduled in Brussels, in April and the issue, market access for exports.