MercoPress. South Atlantic News Agency

Mercosur expects EU trade proposal next Wednesday .

Following the exchange of proposals, “both sides will then decide if what is on the table allows us to continue negotiations and conclude them by October 31”, the officially agreed deadline, “or we consider that proposals are not mature enough and in this case we will continue working further on”, said this Monday in Brussels Arancha González, the spokesperson for the European Union Trade Representative Pascal Lamy.

However EU anticipated that this coming Wednesday it will present Mercosur its free market trade proposal, after having received last Friday the South American's block presentation which is currently under consideration.

Following the assessment of the proposals both sides will then be in condition to decide if it's possible to conclude a free trade agreement by the end of next October.

"We received Mercosur proposal last Saturday and we're examining it, and hope to send the EU proposal to Mercosur next Wednesday", indicated Ms. Gonzalez adding "we need some time to finalize the document; we still have some draft checking with member countries to complete".

The fact that the Mercosur market liberalization proposal was handed last week is a "good commitment signal with the negotiation, which must be praised" indicated an EU source.

In Buenos Aires Eduardo Sigal Argentine Under secretary for Economic integration, America and Mercosur said "cards are now on the table. Mercosur has done its utmost to present the best possible proposal to the Europeans. We now expect EU negotiators to give proof of the same ambition".

Further on Mr. Sigal indicated that after the proposals chapter "if they comply with the aspirations of both blocks, the EU-Mercosur free trade agreement could very well be signed by the end of next month".

Mr. Sigal emphasized that Mercosur has done a great effort in financial services, telecommunications and investments, (as requested by EU), "and this must be contemplated by the other side".

Ms. González added that the EU proposal "must have the same ambition level we have encountered in the Mercosur proposal, but no decision will be forthcoming until all EU member countries have been consulted".

"Therefore there's no scheduled or confirmed bilateral meeting in the near future", indicated Ms. González in reply to a question about a possible negotiating round next October 20 in Brasilia.

In Brasilia diplomatic sources said that the Mercosur proposal contemplates eliminating tariffs for over 90% of goods imported from the EU. Bilateral EU-Mercosur trade reached 46 billion US dollars in 2003.