MercoPress. South Atlantic News Agency

Mercosur-EU talks deadline in doubt

The European Union and Mercosur have yet to exchange their complete proposals for the trade agreement currently under negotiation between the two blocks, according to European Commission sources in Brussels.

Apparently Mercosur requested "additional time" for the completion of the proposal, so the exchange is expected to take place sometime this week.

However the same EC sources considered it was "important" both sides enjoyed the correct environment for the elaboration of the complete drafts.

Mercosur and EU are involved in negotiations for a political dialogue, cooperation and trade agreement since the second half of the nineties but discussions have repeatedly stalled in trade issues.

Chapters on political dialogue and cooperation have long since been approved.

Mercosur is demanding from its future European partners greater market access for commodities and agricultural processed produce.

The EU on the other hand is determined to obtain greater market access for its industrial exports and services as well as fairer conditions for European investments.

Both blocks following successive frustrations managed to agree on October 31 as the deadline for an agreement in trade issues.

However last week the EU Trade Representative Pascal Lamy underlined that the "substance" of the agreement was more important than the "calendar".

Weeks before Brazil, who holds the Mercosur rotating chair during the second half of 2004 and presides over the negotiating team had argued along the same line indicating that October 31 was really a "target date".

Mr. Lamy also pointed out that once the proposals exchange takes place, and they are assessed by both sides, only then will it be possible to know if the October 31 deadline can stand.