MercoPress. South Atlantic News Agency

Mercosur criticizes US and praises EU.

The president of Mercosur' Council of Permanent Representatives, Eduardo Duhalde criticized the United State for insisting with “very selfish” criteria in the building process of the Free Trade Association of the Americas that is scheduled to be launched in 2005 encompassing all American countries with the exception of Cuba.

"They (US) want an FTAA in which their companies have no obstacles in entering the goods and services trade; they never think it has to work both ways", complained Mr. Duhalde talking with journalists in Buenos Aires about US farm protectionism.

Mr. Duhalde revealed there's a "quicker understanding" between Mercosur and the European Union that are currently in the process of negotiating an association and cooperation agreement that includes more than trade and which is expected to be finalized and ready to sign by the end of 2004.

"The EU is Mercosur's main trading block, and from where most investments in the region come" underlined Mr. Duhalde.

But in spite of Mr. Duhalde's promising words Mercosur is not a compact block: Uruguayan president Jorge Batlle feels Uruguay should be commercially and financially closer to the United States and Paraguay is not so optimistic about beef and sugar sales to the EU.

"Our chances of exporting beef to the EU are quiet slim and sugar zero, given the strict quotas and controls", admitted Paraguay's Deputy Agriculture Minister Miriam Segovia.

FTAA talks between United States and mainly Mercosur are blocked because of discrepancies over farm subsidies and agriculture export policies. A preparatory meeting held last month in Buenos Aires collapsed forcing the postponement for the second time of a ministerial meeting scheduled in Puebla, Mexico.