MercoPress. South Atlantic News Agency

Brazil slows down Mercosur-EU talks.

Brazilian reluctance, and strategy, seems to be slowing trade negotiations between Mercosur and the European Union following the latest contacts.

During recent talks in Buenos Aires the EU delegation made an "informal" and tentative presentation of its improved offer that was considered encouraging by Argentine and Uruguayan delegates according to Ambassador Gustavo Vaneiro, Uruguayan Foreign Affairs Director for Integration and Mercosur.

"For the first time figures appeared, it was a considerable offer from the Europeans that encourages talks to advance and we estimate the official exchange of improved offers will be taking place in Brussels next May 10, a week later than scheduled", revealed Ambassador Vaneiro.

However, EU sources indicated that "Argentina and Uruguay must help the strong northern neighbour to feel incentivated and move ahead".

Ambassador Vaneiro admitted that there are some differences with the Brazilian position, "some elements of bureaucratic confusion, others of substance and others of negotiating strategy". Apparently Brazil believes the longer the discussions the more concessions EU will make.

A controversial issue is government purchasing, which Brazil is not keen in opening while Argentina and Uruguay favour conceding.

The EU informal improved offer was three-pronged: a first one would give access to Mercosur farm produce such as beef, pork, garlic, bananas, milk powder, corn, dairy products, rice, ethanol, on a quota system.

The other two contemplate a gradual reduction of import tariffs during a ten year period that would conclude in zero tariffs, and half the current level.

"This is the first time the EU makes such an encompassing offer, but they are also interested in reciprocity in certain fields", explained Ambassador Vaneiro.

EU is particularly interested in services such as telecommunications, financing and maritime transport.

"The exchange of improved offers has not been done. It's not surprising, it will take place at the right time", said Diego de Ojeda, EU spokesperson in trade issues.