MercoPress. South Atlantic News Agency

Mercosur and EU closer to the October target.

Mercosur and European Union representatives after two days of negotiations in Buenos Aires are closer to their objective and the signing of a free trade agreement next October has once again become feasible.

Apparently the EU is committed to greater access for agriculture produce from Mercosur and the South American block is more responsive to investment liberalization for European corporations.

"We've advanced in the right direction and our positions are closer", said Argentine representative for International Economic Relations, Martín Redrado.

Even when most officials were reluctant to give details given the stagnation in previous meetings, reliable sources revealed that "specific methodologies for accessing the European market with agriculture produce as demanded by Mercosur has began to be considered".

"Mercosur proposed equal treatment to locals for European investors", and this proposal was extensive to the "financial and telecommunications sectors", added the source.

Mr. Redrado emphasized that "we can say that we've began addressing and working on the priorities of each region".

The European Union is Mercosur's main trading partner and investor. If a treaty is finally agreed and signed, bilateral trade is expected to increase 15% in the first two years.

The current negotiations will be followed by a further meeting in Brussels early May and a Foreign Secretaries meeting towards the end of May.

Argentina that currently chairs Mercosur is anxious to advance the understanding as much as possible.