MercoPress. South Atlantic News Agency

Mercosur/EU on track to reach an agreement by mid 2011

The next round of talks is scheduled to take place in Brasilia

European Union and Mercosur representatives concluded Friday in Brussels a new round of negotiations for an association and cooperation agreement for which they have proposed an ambitious work calendar extending until mid 2011, when the accord could be closed.

The current round of negotiations was decided last May during the Latinamerica/Caribbean/European Union summit in Madrid. The first talks took place in Buenos Aires and this second round in Brussels extending the whole week from last Monday to Friday.

The association agreement includes political and cooperation chapters but talks in Brussels concentrated in trade.

Basically it was agreed that the next round should take place in Brasilia, towards the end of November, early December, plus another three rounds during the first half of 2011, according to an official release from the Brazilian mission before the EU. Brazil currently holds Mercosur rotating chair.

EU Trade Commissar Karel De Gucht had anticipated before the beginning of the current round that Brussels (and Mercosur) would like to have an agreement wrapped up by mid 2011.

Both sides reaffirmed this week their “commitment to negotiate a balanced and ambitious trade pillar as part of the EU/Mercosur association agreement”, points out the release.

Further on it underlines the “economic and political benefits” that can generate from a closer relation between the two regions, which together represent a market of over 700 million consumers and a combined GDP equivalent to 13 trillion Euros.

Brazilian sources said that during talks in Brussels “progress” was achieved regarding norms of the agreement while regarding “markets’ access” both sides begun talks with the purpose of “establishing the bases to exchange improved proposals”

Following on, the release says that both sides were satisfied “to continue with internal tasks”.

EU and Mercosur negotiations started in 1999 and were stalled since 2004, mainly because the lack of agreement at global level for the liberalization of trade in the framework of the Doha Round.

But given the limited advance in the Doha round both sides last May decided to resume talks.

Up to now agriculture has proved the hardest nut to crack and several European countries led by France have rejected any advances in that field, given the current world slowdown and soaring unemployment figures.