MercoPress, en Español

Montevideo, December 4th 2022 - 15:14 UTC

 

 

Brazil’s main manufacturing lobby calls for urgent resumption of trade talks with EU

Thursday, September 26th 2013 - 06:01 UTC
Full article 12 comments
Barbosa complained that negotiations are stalled because some countries are reluctant to participate Barbosa complained that negotiations are stalled because some countries are reluctant to participate

The powerful manufacturers lobby, Sao Paulo’s Industry Federation, Fiesp believes a free trade agreement between Mercosur and the European Union is very much needed so that Latam’s largest economy climbs out from the “commercial isolation” in which it currently stands.

“Dealing with the EU is not going to be easy, it will take time but for the private sector, but it will mean climbing out from the isolation we have been in for the last twelve months”, said Rubens Barbosa, head of Fiesp Foreign Trade superior council following a meeting with EU ambassadors in Brasilia to address the issue.

Contrary to other Latam countries such as Mexico and Chile, which have a long list of trade agreements, Brazil has only signed three in over a decade, and with Israel, Egypt and Palestine, pointed out Barbosa.

For Fiesp an agreement between the EU and Brazil would mean an ‘important stimulus in the value global chains integration strategy’, which enable to reduce tariffs and promote reciprocal investments and services’ transactions’.

“It’s important for negotiations to advance” added Barbosa who emphasized it was unbearable that “negotiations are again stalled because one or two (Mercosur) countries are reluctant to participate”.

EU chief delegate in Brazil, Ana Paula Zacarías said that both blocks are going through ‘the most sensitive of negotiations’ and trusted that before the end of the year improved proposals for opening trade will be presented.

Zacarias also made reference to the internal differences in Mercosur (Argentina, Brazil, Paraguay, Uruguay and Venezuela) and underlined that “they must find their own path and verify which is the best proposal they can come up with”.

The EU and Mercosur resumed in May 2010 in Madrid negotiations for an ambitious association accord based on cooperation, political dialogue and trade liberalization. Negotiations were first launched in 1999 but were suspended in 2004 because of lack of advances.

Since 2010 the two sides have held nine rounds of negotiations centred in trade rules but without entering the markets’ access issue. Some of the main obstacles to reach an agreement are because Mercosur is calling for a greater opening for its farm produce, while the Europeans want something similar but for manufactured goods and services.

Besides this, the EU recession and lack of leadership, plus divisions among Mercosur countries regarding promotion of local industries and opening of markets have continued to stall the talks.

However Brazil is urged because in 2014 it will lose some significant EU tariff benefits since the country now has a ‘middle class’ country per capita income.
 

Top Comments

Disclaimer & comment rules
  • Islander1

    Simple- ditch the stupid lady and her corrupt Government to the south of the River Plate - then get on with what you need to do.
    Otherwise in 10 years time you will probabaly be worse off than you are now, other than your offshore oil income which will be flowing in to you.

    Sep 26th, 2013 - 09:20 am 0
  • Conqueror

    Have to agree with Islander. The “nigger in the woodpile” is always argieland. It's totally untrustworthy. Someone find a list of all the agreements, contracts, conventions has reneged on or breached. Then there should be a list of all the court judgements with which argieland has refused to comply. There are over 100 in the United States alone. Will argieland ever become honest? Doubtful. Most important thing for Brazil to think about is that, as long as it “associates” with argieland, there will always be suspicions that it will adopt similar attitudes. We know that argieland has “viveza criolla”. Now it seems that Brazil has “jeitinho”. And Uruguay has it as well. An “axis of moral turpitude”. Venezuela probably has it as well. It's certainly got a “strange” president. The EU would be best advised to abandon its “talks” with the illegitimate mercosur and go for the Pacific Alliance. Who wants anything from the mercosur states?

    Sep 26th, 2013 - 12:17 pm 0
  • Troy Tempest

    No more Argentina holding other countries back and trying to pull them down to her level.

    Brazil will surge ahead of Argentina.

    Which way will Uruguay go?

    What does Paraguay think of all this?

    Sep 26th, 2013 - 02:22 pm 0
Read all comments

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!