MercoPress. South Atlantic News Agency

EU: Mercosur trade proposal “insufficient”.

The European Commission considered the improved offer for trade liberalization presented by Mercosur this week in Brussels as “insufficient” and not “as ambitious” as the EU would have expected.

"Further improvements" in several sectors are needed concluded the EC following a first reading of the "voluminous offer, 600 pages" which "is not very impressive", said an EC source.

The EU improved offer on the other hand "is very ambitious" since it covers 100% of all industrial goods trade, 86% of farm produce as well as ample proposals in services, indicated the same source.

"Mercosur offer is insufficient since it does not reach 90% of industrial goods nor does it include EC's request regarding the services sector" plus it needs improvements in maritime transport, investments, environment and government procurement.

However Mercosur is also unsatisfied with the improved offer presented by the EC since it considers the agriculture chapter "not as ambitious as originally announced".

But both sides agree that claims and counter claims are all part of the negotiation process and "the assessment of the improved offers" have not concluded.

Hopes are now centred in the coming EU, Latinamerica and Caribbean summit scheduled for May 28, 29 in the Mexican city of Guadalajara, where EU and Mercosur presidents and prime ministers could further advance and anticipate the signing day for the association agreement, originally expected for next October.

On of the toughest nuts to crack besides agriculture is government procurement, a chapter Brazil is adamant to liberate and Europeans investors are most interested in opening.

If the EU-Mercosur association agreement finally becomes a reality, the largest free trade area of the world will be created. The EU already has free trade agreements with Mexico and Chile.