MercoPress. South Atlantic News Agency

Mercosur agrees on joint trade proposal to exchange with Europe, announces Mujica

“Believe it or not” it was achieved and in two months will be presented said the Uruguayan leader

“It took time and effort, but believe it or not” in less than two months time, Argentina, Brazil, Paraguay and Uruguay will be presenting their joint tariff reduction proposal to Europe for discussions on an ambitious Mercosur/EU cooperation and trade agreement that has been on the table since 1999, said President Jose Mujica.

 “We're very close, believe it or not we managed to make it” said the Uruguayan leader according to statements in the country's Executive site.

Discussions for a trade agreement between Mercosur and the EU were formally launched in November 1999, but have since then had minor successes and a string of derailments and interruptions. Last year they were re-launched with high expectations for an exchange of proposals last December but the objective was missed.

However during a technical meeting held last 21 March in Brussels to assess the process, Mercosur and the EU agreed to continue negotiations, with no calendar date for the exchange. Last week Mercosur members agreed during a meeting in Montevideo to an overall tariff reduction for 87% of the universe of goods and services traded, following Argentina's decision to be more flexible in sectors such as dairy, wheat, auto industry. However some textiles and computers were out of the proposed deal.

“The list covers 87% of all Mercosur imports and could even reach 90%”, announced Brazil's Development, Industry and foreign trade ministry, which referred to Argentina's 'attitude' that allowed to clear the way for an only 'joint proposal' from Argentina, Brazil, Paraguay and Uruguay to be presented in two months time.

Mujica also referred to the Uruguayan opposition proposal for a free trade agreement with the United States taking into account the fact that he will be visiting Washington in May and is scheduled to meet with President Obama.

”The priority is to comply with the pending chapters of the TIFA (trade and investment framework agreement) which was signed with the US in 2007“, said Mujica.

”TIFA still has much to be achieved and agreed; we prefer to work line by line and not keep signing papers”, indicated the Uruguayan leader who is well aware how sensitive is the issue of any understanding with the US for the ruling catch all coalition (from communists and Trotskyites to Christina Democrats) particularly in an election year”.