
The European Commission will be presenting in the next weeks a report on the consequences for the European agriculture of a trade agreement with Mercosur, announced EU Agriculture Commissioner Dacian Ciolos following a Thursday meeting of the Agriculture Council in Luxembourg.

President Jose Mujica promised there will be no ‘uncontrolled inflation in Uruguay’ and although admitting it’s not a simple problem, with no magic solution, there are “sufficient tools’ to address the issue including putting “government spending on a diet”.

Several Mercosur negotiations with other blocks have failed because “they ask too much and offer too little” said Samuel Pinheiro recently appointed Mercosur High Representative and who is holding a round of meetings with member countries’ leaders.

European Union’s top trade negotiator, Karel de Gucht, accused Argentina of being “the great obstacle” in an association agreement between the EU and Mercosur, and threatened to take the case before the WTO.

Latin America and the Caribbean have weathered the 2008-2009 recession much better than it had previous downturns. However less well-known is that the region, particularly Mercosur members, also decisively outperformed many other regions during the same period with a decline in growth smaller than that of the middle-income country average and with a rebound that was swifter and stronger.

Venezuela in Mercosur will act as a balancing element and Unasur has more than proven its merits, said Paraguay’s new Foreign Affairs minister Jorge Lara Castro who insisted the country must work urgently to overcome asymmetries in the region and passive integration is not enough.

The European Union and Mercosur currently holding a round of association and trade talks will be exchanging proposals for market access of their list of products in the coming two months, according to the EU Trade Commissioner Karel De Gucht.

The Eurogroup for Animals called on the European Union to demand from Mercosur farmers associations and governments the same ‘animal well-being’ requisites and regulations which their European counterparts must comply with.

Several European Union objections to the current functioning of Mercosur have surfaced in documents relative to the ongoing trade negotiations round which is scheduled to have another chapter early May in Asunción, Paraguay.

European Union Agriculture ministers will be meeting this week in Luxembourg to discuss the current trade negotiations with Mercosur, according to European Commission sources.