MercoPress. South Atlantic News Agency

EU and Mercosur address trade accord in Peru

Negotiations for an association, trade and cooperation agreement between the European Union and Mercosur are in stand by waiting for results from the World Trade Organization, Doha round, said the European Commission president Jose Manuel Barroso.

According to the EC head, members of Mercosur (Argentina, Brazil, Paraguay and Uruguay) have said that the "priority now is a successful conclusion of the Doha negotiations", which according to Pascal Lamy from WTO, should resume later this month, early June at the most, and "should see a significant advance in several sectors before the end of 2008". "Some of the issues we were addressing with Mercosur and other blocks are a bit in suspense to see if we can conclude (or not) Doha negotiations", said Barroso during this week's visit to Mexico. Nevertheless "we are closer than what is usually said or reported" about reaching an agreement with Mercosur. Barroso said discussions will continue during Friday's EU/Latinamerica and Caribbean leaders' summit in Lima, Peru, particularly regarding issues linked to trade. "In political and international affairs we are close allies", said Barroso. The Doha round was launched in 2001 as a mechanism to help liberalize global trade but so far has been stalled because of differences between rich and developing countries regarding mainly the generous subsidies granted by United States and the European Union to its farmers and export subsidies for surpluses. The EU already has association, cooperation and trade agreements with Mexico and Chile and is in the process of talks with Central American countries and the Andean Community.