MercoPress. South Atlantic News Agency

Europe demanding a decision from Mercosur on advancing the trade talks

Barroso set eyes on an agreement with Brazil but also prefers “a region to region” deal

The European Commission president Jose Manuel Barroso called on Mercosur to decide whether it wishes to advance in trade talks with the European Union jointly, as a block, and suggested the idea of a 'two-speed negotiation', since it is clear that Brazil is interested in advancing and wants to reach an agreement.

 Speaking from Paris on Friday Barroso claimed that “some Mercosur countries are not supporting” these negotiations with the EU, but “it is evident Brazil wants to advance and is committed to reaching an agreement”

“It's up to our good friends from Mercosur to see if they are in condition, or not, to advance together as a group” in these negotiations, “or if there are countries that want to advance on their own” said Barroso who nevertheless underlined that the EU prefers a free trade negotiation with “the whole of Mercosur”, because “our vision is of region to region”.

But Barroso also mentioned that in the case of the Andean Community, in which trade deals were reached with Chile and Peru, but not with Bolivia and Ecuador.

“Brazil must decide if it wants, or not, to subscribe an agreement with the EU together with Mercosur and the other block member countries”, insisted the EC president.

“We want Mercosur as a whole in the negotiations, but we will see” if effectively all its members “are ready to continue advancing”.

Mercosur and the EU almost a year ago (January) agreed during a ministerial meeting that both sides would be presenting their tariffs' proposals by the end of 2013, so as to keep advancing in negotiations which were re-launched in 2010, after six years of freeze.

A Mercosur rule forces all member countries to negotiate trade agreements jointly, which means Argentina, Brazil, Uruguay, Venezuela and Paraguay, should all be in agreement but fully integrated (plus elaborate an only proposal) which is not entirely the case.

In effect, Venezuela which only joined a year ago is still adapting its rules and tariffs to those of Mercosur and will not be part of the joint proposal that is expected to be presented sometime this month.

Paraguay on the other hand which was suspended from the group in June 2012 and only had the suspension lifted last August, has resumed bilateral relations with all members but not fully with Mercosur since it objects the way Venezuela was incorporated, in clear breach of the group's rules which demand a unanimous vote and presence when the decision. At the time, Paraguay was suspended and absent from the Venezuela resolution.

Paraguay insists this must be amended since its Senate following its suspension last year voted in clear protest of the June/July events, specifically against the incorporation of Venezuela. This situation must be first lifted by the Senate, and despite President Horacio Cartes pledge to his peers and commitment it is not sure whether he has the necessary support for the initiative.