MercoPress. South Atlantic News Agency

EU-Mercosur begin another trade round.

Mercosur and European Union delegates will attempt this coming week in Brasilia to unlock negotiations for a free trade area between both blocks.

Talks in Brussels were cancelled last July 21 when Mercosur considered EU agriculture proposal "insufficient". "It's essential that EU presents an effective and substantially improved agriculture proposal", said Brazilian International Trade Negotiator Regis Arslanian in Brasilia adding "so far it has proved quiet a modest proposal".

Mr. Arslanian indicated that in some cases the EU is proposing quotas below the actual level of bilateral trade and mentioned specifically poultry. "Brazil currently exports 270,000 tons of chicken to EU and they are offering Mercosur a quota of 75,000 tons". The Brazilian delegate also mentioned the non inclusion of sugar, "a commodity which is vital for Brazil". "We simply want an offer with greater farm produce access to EU markets".

Last year 70% of Mercosur sales to the European Union were mainly agriculture commodities while the EU mostly industrial, 89% with only 7,1% farm produce.

"Reaching a balance between both sides proposals now rests on the Europeans", indicated Mr. Arslanian, who cautioned that "if this is not so, the (agreed) October 31 deadline for an agreement will be showing it's not viable and we can't continue on this path".