MercoPress. South Atlantic News Agency

“Political” solution for Mercosur trade dispute.

The Brazilian government is willing to negotiate a “political” solution to the current trade conflicts with Argentina (Brazil's main Mercosur partner), said this Monday Brazilian Under secretary for South American affairs Luis Felipe Macedo Soares.

"The next step is not only discuss with Argentine government officials but with private sector representative, ways to advance with industrial integration in Mercosur", explained Mr. Macedo Soares revealing that Foreign Affairs Minister Celso Amorim will be visiting Buenos Aires with that agenda next August 8.

The two countries are currently involved in a trade dispute following President Nestor Kirchner's administration decision to limit Brazilian imports of television sets and home while line equipment.

Mr. Macedo Soares said Brazil is against quotas and tariffs but understands Argentine industry's "competitiveness" difficulties. Last week Brazilian Minister of Development, Industry and Foreign Trade Luiz Fernando Furlan announced both governments had agreed to a "transition period" of sixty days to solve the dispute over imports of washing machines.

During the agreed period the number of Brazilian imported washing machines will be limited to the average of previous months.

Mr. Furlan insisted that Brazil's target is "dialogue, understanding and strengthening Mercosur".