MercoPress. South Atlantic News Agency

Next round of EU/Mercosur trade association talks in May in Madrid

Geoffrey Barret, head of the EC delegation before Uruguay and Paraguay

The European Union and Mercosur have suspended negotiations for an association agreement, basically on trade issues, admitted Geoffrey Barrett head of the European Commission delegation for Uruguay and Paraguay.

Nevertheless Barrett said that integration negotiations with Mercosur and the Caribbean are set to resume next May when the summit of Latinamerica, Caribbean and EU countries scheduled to take place in Madrid, Spain.

“The situation with Mercosur, with which the last meeting was held in May in Prague, is under consideration”, because trade obstacles remain and it has not been possible to advance since 2004. The EU and Mercosur began negotiations for an ambitious cooperation and integration association which was launched in the framework agreement of Madrid in 1999.

Barrett comments took place this week during the joint presentation in Montevideo and Brussels of the “EU-Latinamerica: Global players in partnership” in preparation for the Madrid summit next year, which is seen as an attempt by the EU to re-launch negotiations with Mercosur, Central America and the Andean Community, taking advantage of the fact Spain will be presiding over the Community.

The EC representative said that links between Mercosur and EU have advanced considerably in areas as technology and cooperation, but in trade, obstacles remain so far insurmountable. This is particularly evident for such areas as farm policies, subsidies and services, which are defined as highly “sensitive”.

Ambassador Barrett said that the respective positions have not convinced “nor the EU nor Mercosur” and it’s hard to anticipate when full negotiations will resume. He also pointed out that economic integration among Mercosur countries still has to advance, and “we are cooperating in those fields”.

But “we have decided not to launch negotiations until we are certain of results; last time negotiations went unfinished”. Anyhow it must be made clear that “in spite of all that has happened we are certain we can conclude negotiations to satisfaction of both sides”.

Barrett added that during 2007 and 2008 the EU was involved in the launching of strategic associations with Brazil and Mexico, and based on this experience “the EU explores how to enrich existing bilateral relations with all countries of the region”.

The delegate said that links between the EU and Latinamerica go beyond “two regions relation” and reflect “a mature dialogue relation between societies that want to discuss the major issues that are challenging our world”.

Barrett added that in the last ten years the European commission has financed 450 projects in Latinamerica and the Caribbean totalling over 3 billion Euros and for the 2007/2013 period the Development Cooperation Instrument for the region will climb to 2.7 billion Euros, mostly geared to the common cause of “combating poverty”.