
With stronger local currencies Mercosur main beef exporters, Brazil and Uruguay are finding it more profitable to supply their domestic markets than exporting, in spite of growing international demand.

Uruguayan president Jose Mujica strongly supported the incorporation of Venezuela as full member of Mercosur from a Sunday column published in one of Brazil’s most influential newspapers, Folha de Sao Paulo.

Argentina’s hurdles to imports don’t help European Union /Mercosur trade negotiations and generate “uncertainty” warned the EU head of delegation in Argentina Alfonso Diez Torres. He also criticized the “one to one” Argentine policy that forces the local assembly plants to match every import-dollar with export dollars.

“Argentina is not a great trade partner for the European Union in absolute terms, but the EU is a crucial partner for Argentina”, pointed out the head of the EU delegation in Buenos Aires Alfonso Diez Torres.

The Ulster Farmers’ Union has raised concerns over the current trade deal being discussed between the European Union and Mercosur. UFU beef and lamb chairman Ray Elkin said: “The potential for a Mercosur trade deal is of great concern to the UFU, and could have a devastating impact on Northern Ireland’s beef sector in particular.”

The European Union and Mercosur have a clear commitment to advance trade negotiations and conclude a deal, if possible, by the end of the year, if not at the beginning of next year when Argentina will again hold the rotating chair of the South American group.

The potential full membership of Venezuela in Mercosur, before formalizing its departure from the Andean Community (CAN) has Venezuelan entrepreneurs and several parties linked to integration awaiting and in uncertainty since they are not in touch with government actions on the issue.

Uruguayan president Jose Mujica promised his peer Hugo Chavez he would press strongly for Venezuela’s incorporation as full member of Mercosur because this will help balance the group.

Uruguay’s Vice-president Danilo Astori said that Mercosur “unfulfilled agenda” will not affect the chances of reaching an agreement with the European Union which if finally achieved will also help the “block to work better”.

Ireland believes it looks increasingly unlikely that there will be a Mercosur-European Union trade deal before the end of the year. Mercosur and the EU resumed trade talks in May 2010 with the objective of reaching a deal by the end of 2011.