
European Union farmers could suffer losses ranking from one to three billion Euros if a trade agreement is finally agreed with Mercosur according to a European Commission evaluation paper on the impact.

The Mercosur-EU trade agreement is one of several issues Brazilian president Dilma Rousseff will be addressing Monday in Brussels during the fifth Brazil-EU summit. Rousseff begins in Belgium an official visit to Europe that also includes Turkey and Bulgaria.

A Uruguayan government delegation will begin talks on Tuesday in Brazil to address the latest restrictions imposed by Mercosur largest member and which threaten several manufacturing sectors, particularly the auto industry, said Foreign Affairs minister Luis Almagro.

The Economist in its latest edition has a two-chapter piece on trade restrictions imposed by South America’s two biggest economies. The first (“Keep Out”) refers to Argentina and the second (“A self made siege’) to Brazil.

Uruguay is reconsidering the situation and links with Mercosur, given the recent trade obstacles and tariffs imposed by Mercosur senior partners Brazil and Argentina, announced President Jose Mujica in an interview.

Uruguayan president Jose Mujica admitted a certain ‘stinging feeling’ following the recent Brazilian decision to increase import taxes on vehicles by 30%, which could also have an impact on Mercosur partners.

Mercosur coordinators are holding meetings in Montevideo to decide on a mechanism for temporary increases of national tariffs besides those already implemented under the common external tariff for the group.

The Brazilian government displayed this weekend thousands of troops with air support along the borders with Argentina, Paraguay and Uruguay in a concerted effort to combat organized crime.

In twelve years Mercosur has consolidated as the leading region in soybean production with 52% of the world crop and the potential to further expand area and yields.

President Jose Mujica admitted to Uruguayan manufacturers and farmers that with recurrent Argentine and Brazilian obstacles to trade “it’s very hard to make Mercosur function” and good relations between presidents “are not enough”.