MercoPress. South Atlantic News Agency

EU top agriculture official visits Mercosur.

European Union Agriculture Commissar Franz Fischler is scheduled in Brazil and Argentina this weekend to further advance in negotiations for the creation of a free trade association between Mercosur and the EU.

Mr. Fischler is expected to brief Mercosur officials on the latest European farm subsidies reform, CAP (Common Agriculture Policy), and insist on EU willingness to reach by next October an association agreement, particularly convincing Mercosur's main country members of the benefits of the latest EU market access proposal. "Our agriculture offer has been considerably improved, and we expect a similar attitude from Mercosur", said Mr. Fischler's spokesperson Gregor Kreuzhueber.

In Buenos Aires Argentine Trade Representative Martín Redrado underlined Mercosur seeks greater access for agri-business produce, "not only beef and soybeans, but cookies, oil, wine", adding that "we're more interested in discussing market access than fighting over subsidy policies; this should not be harmful for European farmers since demand is not entirely satisfied".

Apparently during the "improved offers" round in Buenos Aires, EU proposed preferential agriculture quotas at World Trade Organization plus level, that means above the level agreed in WTO which could have an initial primary impact of 4 billion US dollars Mercosur farm exports.

Mercosur on the other hand is offering liberalization for a range of 8,300 products with gradual tariff reductions in a ten year period that EU is prepared to accept given the competitiveness asymmetry between the two blocks.

Ambassador Gustavo Vaneiro, Uruguay's Director of Integration and Mercosur Affairs praised the EU offer arguing it's the first time "Europeans make such a proposal in an area so sensitive for them. This could be signalling they want to make it a deal in time for October". "We're assessing their offer, and I believe we should also contemplate some of the government appropriations aspirations the EU has requested", indicated Ambassador Vaneiro adding that "they are also very much interested in telecommunications and maritime transport given their influence in the area". Ambassador Vaneiro revealed that both sides will not formalize any understanding until the next negotiation round to be held in Brussels during the first week of May.

In related news it was announced in Brazil that Mercosur and the South African Customs Union will be signing a preferential tariffs agreement in the coming July Mercosur summit to be held in Buenos Aires. (The South African Customs Union includes South Africa, Namibia, Botswana, Lesotho and Swaziland).

Another special guest in the coming Mercosur summit will be Mexican president Vicente Fox, signalling the official beginning of bilateral talks for the integration of the North American country.