
Argentina and Brazil agreed Friday to set up a Monitoring Committee in order to exclude Brazilian products from being affected by the imports non-automatic licence system announced this week by the administration of President Cristina Fernandez de Kirchner.

The chairman of the Uruguayan Chamber of Industry, Washington Burghi, warned that Argentina’s decision to restrict imports could be “the beginning of the end” for the Mercosur. However Argentine ambassador in Montevideo said decisions are targeted against Asian imports with the purpose of defending Argentine jobs.

Members from the European Parliament representing rural constituencies have come out strongly against a possible trade deal between Europe and Mercosur arguing that an influx of meat imports could have a devastating impact on the EU beef industry.

France warned Tuesday that it is following closely European Union/Mercosur trade talks to ensure that farmers from both blocks are strictly subjected to the same rules.

Brazilian Defence minister Nelson Jobim begins this week a tour of neighbouring Mercosur partners where he is scheduled to sign a statement underlining the strategic relation with Argentina, and further on Uruguay’s interest in military cooperation and equipment.

The European Union Trade Commissioner Karen De Gucht anticipates a full trade agreement with Mercosur will be reached in a “short time” given the negotiations “unusual” speed but also cautioned about new challenges such as currencies over or under appreciation.

European Union Trade commissioner Karel de Gutch said Monday he strongly believes the EU will reach a trade agreement with Mercosur because “this is the moment” and both sides are committed to conclude negotiations positively.

Argentina has stopped the import of high-class luxury cars and redoubled efforts to convince companies with no assembly plants in Mercosur to reduce imports and reach export agreements with Argentine auto parts industry.

The Paraguayan political system is willing to consider the incorporation of Venezuela to Mercosur as a full member if there is a “significant gesture or compensation” from the government of President Hugo Chavez, according to congressional sources in Asunción.

The European Union Trade Commissioner Karel De Gucht will travel next week to Paraguay and Uruguay to reinforce bilateral relations and to advance on the ongoing EU/Mercosur negotiations to reach an overall trade and cooperation agreement.