
The apparent impasse in the European Union/Mercosur trade talks was addressed by the Paraguayan president Fernando Lugo at a meeting on Tuesday with Members of the European Parliament and the EU delegation to Mercosur negotiations.

Brazilian president Dilma Rousseff's international affairs advisor Marco Aurélio García lowered the tone of the trade conflict with Argentina and said that the relationship between both countries is fine despite the trade barriers that Brazil imposed on the import of Argentine cars.

India will be launching negotiations for a comprehensive economic cooperation agreement (CECA) with Mercosur although it will first “expedite” talks for a preferential trade agreement with the South African Customs Union (SACU).

The outcome of a two-day European and Latin America lawmakers’ meeting in Uruguay was considered very positive and a strong message to forward negotiations on the sensitive EU/Mercosur trade and cooperation agreement.

Uruguay’s sound economic and stable political environment were underlined by the country’s Deputy Minister for Public Works and Transport during a high level business forum to attract investors to Latin American which was held in the capital of South Korea, Seoul.

Current trade negotiations between the European Union and Mercosur dominated the opening speeches at of Eurolat (Europe/Latin America Parliaments) Fifth Plenary Session which is taking place in Montevideo.

The following piece by Jude Webber writing for the Financial Times explains the different approach by the two neighboring countries to the windfall earnings of the commodities boom.

Parliamentary leaders of South Korea and Brazil agreed Monday in Seoul to put forth efforts to promote economic ties between the two nations in the framework of Mercosur, through closer interactions at the parliamentary level.

French president Nicholas Sarkozy stressed over the weekend he would not accept an European Union-Mercosur trade agreement that could mean a loss of income for European farmers.

French Foreign Trade Secretary Pierre Lellouche said he had witnessed ‘strong tensions’ among Mercosur members during negotiations with the European Union for a free trade agreement.