MercoPress. South Atlantic News Agency

EU demands more integration from future associates

The European Union cautioned Andean and Central American countries that any future trade association must have trade significance and is conditioned to the current World Trade Organization round.

"We believe these regions must integrate sufficiently as to make trade talks effective, given the current volume of trade with the European Union", said this Monday EU Trade Commissar Paul Lamy in Luxemburg.

Mr. Lamy and EU Foreign Affairs Commissar Chris Patten pointed out that the EU is willing to contribute to the process of regional integration, "but the current level of integration is insufficient to begin trade talks".

The two EU top officials recalled also that "we haven't started any free trade negotiations since the beginning of the current multilateral WTO round, because this round is a top priority for the European Union".

Mr. Lamy further on said that in the coming EU-Latinamerica summit scheduled for May 28, 29 in Mexico, "our intention is to reach the finalization of trade negotiations with Mercosur" for the establishment of an association, cooperation and free trade. "This will not involve countries from the Community of Andean nations or Central America".

The Andean Community, which includes Bolivia, Ecuador, Peru, Colombia and Venezuela, plus five from Central America, Nicaragua, Guatemala, Honduras, El Salvador and Panama, proposed the EU that in the Guadalajara summit both sides commit themselves to launch trade talks beginning January 2005.

EU has not officially replied to the initiative but the European Commission through Mr. Lamy has now anticipated the Europeans position.

Besides, the EU would like to hold trade talks with the whole region and in Central America, Costa Rica (a close ally of the US) in not part of the group.

Central American countries have criticized Brussels arguing that in the last EU-Latinamerican summit held in 2002 in Madrid, "regional integration" was not a pre condition for talks and the WTO link was limited to "substantial advances" and not the conclusion of the multilateral round.