MercoPress. South Atlantic News Agency

EU-Mercosur headed for “light” agreement

European Union Trade Commissar Pascal Lamy said that the EU-Mercosur technical negotiations that began this Wednesday in Buenos Aires are crucial to determine if they will conclude by next October as was agreed in the recent presidential summit held in Guadalajara, Mexico.

However Argentine Minister of Economy Roberto Lavagna from Buenos Aires said it was perfectly possible that Mercosur-EU negotiations could end in a "light" agreement, with few advances and not many changes to the current situation.

Two weeks ago in Mexico Mercosur Ministers of Commerce and Mr. Lamy publicly stated their willingness to reach an agreement by next October as was scheduled since 2003. However Mr. Lavagna recalled that it was France that insisted that no final date for the understanding be mentioned in the Guadalajara declaration. "There's some internal brewing in the EU and behind France are Hungary, Portugal and other country members", added Mr. Lavagna.

Earlier in the day Mr. Lamy during an economic forum in Madrid blamed Brazil for its persistent reluctance in addressing issues in services, investment and government purchasing, "which are very important for us and show no advances", causing a "misbalance" in reciprocal proposals.

But Mr. Lavagna insisted in describing the EU proposal as "very limited".

Mercosur on the other hand has offered EU the reduction of World Trade Organization, WTO, 100% consolidated tariffs, "which are the maximum allowed and don't necessarily coincide with those effectively enforced" and a ten year reduction for 87% of all products traded. "Brussels on the other hand is offering to liberate 50% of goods since the other 48% has no tariffs", added Mr. Lavagna.

Mr. Lamy argued that the proposals "misbalance" will force the EU to fight strongly, "this week and the following week", when a United Nations world trade meeting takes place in Sao Paulo, Brazil.

Further on Mr. Lamy underlined that the EU has given a great step forward, particularly in very sensitive areas (for European farmers) such as "agriculture, beef, ethanol?". "This is evidence of political willingness to conclude" an agreement, although October is "not necessarily the objective or a deadline". Mr. Lamy said that day will come when proposals are "balanced" and there's a qualified majority in the European Council.