MercoPress. South Atlantic News Agency

EU-Mercosur clear the way to advance negotiations.

Mercosur and the European Union agreed last Sunday in Brasilia to unblock current trade negotiations and announced that next September 20 they will be exchanging further proposals with the purpose of keeping to the original deadline of October 31.

European Union Trade Commissar Paul Lamy and Brazilian Foreign Affairs minister Celso Amorim spent four hours in the Brazilian Ministry discussing details of the coming agenda.

"Next Monday September 20th we'll be presenting our complete proposals, which will be assessed by both sides and from then on we expect to set a date for the final and definitive ministerial level meeting", indicated Mr. Amorim. "Talks were very productive and we are under the impression that with an additional push from both sides, things will begin moving and by the end of October we'll be celebrating", added Mr. Lamy who actually pressed for this Sunday's meeting in Brasilia since his mandate will be over by next November.

In spite of strong resistance from some domestic lobbies, the Brazilian government is interested in reaching an agreement while the country holds the rotating Mercosur chair.

Negotiations have been stalled now for several months with Mercosur demanding improved market access for agriculture commodities, particularly beef, while the European Union insists in further opening for investments, government purchasing and the services sector.

Mr. Amorim said both sides had agreed to keep to the original timetable, "but intensifying efforts, and this Monday there will be a technical meeting in Brussels, as scheduled, not necessarily to advance negotiations but to clarify certain issues which could lead us to a successful ending of the talks".

Analysts consider the promised September 20 exchange "very positive" for the resumption of talks since both sides claimed that the other was reluctant to show their final proposals and arguments.

The Brazilian ministers of Agriculture and Industry and Foreign Trade, Rodrigo Rodriguez and Luiz Fernando Furlan were also present during the meeting with EU Trade representative Paul Lamy.

If an agreement is finally reached EU-Mercosur would become the world's main free trade area with 680 million people. EU-Mercosur trade averages 46 billion US dollars annually. EU absorbs 25% of all Mercosur countries exports.

In related news Venezuela forecasted that it will be officially integrated to Mercosur by next October, according to Venezuela's Deputy Production and Trade Minister Cruz Martínez. "We're currently working on a complementation agreement involving the whole tariff universe of Mercosur and the Andean Community (Bolivia, Colombia, Ecuador, Peru and Venezuela), and from then on we'll be moving to a free trade understanding sometime next month", said Mr. Cruz Martinez.