
A trade agreement between Mercosur and the European Union would significantly expand European investment given the increase in bilateral trade, but ‘there’s too much fear from both sides’, according to Adrian van den Hover head of international relations for Business Europe.

The Spanish government's enthusiasm for an European Union free-trade agreement with Mercosur remains solid and Madrid seems willing to put some sectors of agriculture at risk in exchange for access to new markets for the country's multinationals.

Following on an 8.5% growth rate in 2010, Uruguay’s real GDP continued to expand 6.8% in the first quarter of this year compared with the same period of 2010, according to the Central bank Debt Management Unit.

Argentina’s trade relation with Brazil does not have restrictions and “it’s understandable that some differences surface” when bilateral trade will be reaching over 40 billion dollars this year, said Argentine Industry Ministry sources in Buenos Aires.

Members of the European Parliament discussing the agriculture budget said that compensation for beef farmers that could face Mercosur competition, if a trade agreement is finally reached, “is not enough” and anticipated that “we will not accept sweeteners in this area”.

United States industry and agriculture lobbies are again advocating forcefully before Congress on the pending free trade agreement with Colombia claiming the delay is costing market share to a more aggressive Mercosur.

Brazil’s JBS SA, the world’s biggest beef producer, is betting on a rebound in U.S. meat sales as a weak dollar makes production in the country as competitive as in emerging markets.

The European Union and Mercosur concluded Friday in Brussels the sixth round of negotiations for a cooperation and trade agreement without any formal exchange of proposals but with the commitment to continue discussions.

Poland which currently holds the rotating chair of the European Union presidency warned that any trade agreements with third parties must strictly abide by the EU sanitary and food security standards.

The Irish government is expecting a report from the European Commission setting out the economic impact on Eire of a potential trade agreement between the EU and Mercosur.