MercoPress. South Atlantic News Agency

Spain optimistic about an EU/Mercosur trade agreement this year

Foreign Affairs minister Miguel Angel Moratinos

Spain’s Foreign Affairs minister Miguel Angel Moratinos is confident that the European Union will reach a trade understanding or road map with Mercosur during the first half of this year, since Spain holds the EU rotating presidency.

Moratinos said he was optimistic about discussions with the Mercosur group (Argentina, Brazil, Paraguay and Uruguay) during a meeting with European and foreign correspondents to inform about the priorities of the EU presidency during the first six months of this year.

“Spain has targeted the challenge to try and close some of the pending trade agreements currently under discussions, (or stalled) with Mercosur, the Andean Community and Central America”, said Moratinos.

The EU will be holding vis-à-vis talks with each of the three groups following the EU-27/Latinamerica and Caribbean summit of leaders scheduled to take place next May 18 in Madrid.

According to Moratinos the Spanish strategy is to coincide, --or reach a consensus--, on a work-timetable with Mercosur members which should iron out the path for a definitive agreement, which has been stalled for years.

EU/Mercosur negotiations date back to 2000 although in the last five years they have not advanced much because of the lack of agreement on the so-called World Trade Organization Doha Round for the liberalization of world trade.

Mercosur in spite of its declared thrust as a block has not advanced much in trade integration with other countries or regional groups. Senior partners Argentina and Brazil with different trade policies have repeatedly clashed while junior members Paraguay and Uruguay complain bitterly that they are left out or simply ignored in major decisions of the South American trade block.

EU is the main investor in Mercosur and second trade partner behind the United States, equivalent to 20% of overall trade. Mercosur is the EU eighth trade partner and represents 3.5% of the European block trade.

Spain took up the EU presidency from Sweden last week and the occasion was marked by a breathtaking light show in Puerta Del Sol in Madrid. Sweden had been at the reign of the EU since July 1, 2009 and now Spain will head the EU till 30 Jun, 2010.