
Negotiations for a trade agreement between the European Union and Mercosur, re-launched this week in Buenos Aires, could not have a second chapter if the Argentine government insists in restrictions to food imports, said the head of the EU delegation.

The association agreement between the European Union and Mercosur has to go “beyond tariffs and subsidies”, said Brazilian president addressing businessmen from Brazil and a visiting Italian delegation headed by Prime Minister Silvio Berlusconi.

Brazilian President Lula da Silva said on Tuesday he expects the four Mercosur countries Argentina, Brazil, Paraguay and Uruguay to meet in the semi-finals of the World Cup in South Africa.

On the eve of the resumption of European Union/Mercosur trade talks, the EU has again complained about Argentina’s ‘protectionist’ measures on some EU agriculture produce and Greece is demanding discussions be conditioned to an end to barriers.

Paraguayan president Fernando Lugo called on Congress, under opposition control, to support the incorporation of Venezuela to Mercosur, as has already been voted by Argentina, Uruguay and Brazil.

One of Brazil’s most influential lobbies, the Sao Paulo Federation of Industries, FIESP, claims that Mercosur is an economic space “too small” given the development and “growing international presence of Brazil”.

Uruguayan president Jose Pepe Mujica is riding high on public opinion approval in his first 100 days in office. According to the latest data from several pollsters, Mujica has an approval rating of 74%, which is 13 and 16 percentage points more than his two immediate predecessors Tabare Vazquez and Jorge Batlle.

“There are better conditions, things are quieter now” to consider the incorporation of Venezuela to Mercosur as full member said Paraguayan cabinet chief Miguel Lopez Perito, following a political agreement in Congress with one of the main opposition parties.

Argentine activists voted Wednesday night to temporarily lift the roadblock on a bridge leading to Uruguay which has been at the heart of a diplomatic dispute between the two countries regarding the construction of a pulp mill on the Uruguayan side which allegedly contaminates.

In spite of a specific mandate to vote against the incorporation of Venezuela to Mercosur, the Colorado party which is the single strongest force in the Paraguayan senate could reconsider the situation according to Martin Chiola, first Vice-president of the Upper House.