Technical delegates from Mercosur and the European Union are holding a round of talks in Asunción to consider 'levels of ambition' for the coming exchange of tariff proposals with the purpose of reaching a much delayed free trade agreement, said Paraguayan Deputy Economic Relations minister, Rigoberto Gauto.
Mercosur foreign ministers meeting held this week in Paraguay to decide on the proposal to present the European Union for a trade agreement, apparently was not as satisfactory as announced because of Argentina's reluctance and 'reserves' about opening its market to the EU.
Uruguayan lawmaker Jaime Trobo said that a blockade in the Americas was 'unacceptable' and called for closer links between the Falkland/Malvinas Islands and the continent, urging the private sector to take advantage of the business opportunities in trade and services.
Brazil and the European Union agreed to hold their annual summit during the first half of 2016, following the exchange of proposals for a wide ranging and cooperation trade agreement between the EU and Mercosur.
German Chancellor Angela Merkel pressed Brazil's government on Thursday to further open its markets to foreign companies, and said she saw an opportunity to reach a free-trade deal between the European Union and the Mercosur trade bloc. Merkel is on a two-day visit to Brazil with a large delegation of government officials and representatives from German companies.
Uruguay's foreign minister said on Friday that nobody supports the proposal from the Brazilian Senate president Renan Calheiros to put an end to the Mercosur customs union. However he did point out that he proposal exposed that the block effectively is 'not working' and needs to have its foundations reviewed.
Renan Calheiros, president of the Brazilian Senate, and the man who could help President Dilma Rousseff avoid impeachment in Congress, has proposed a package of measures to rescue Brazil from its current stagflation, but among his demands is “an end to the customs union of Mercosur”.
Technical teams from Mercosur country members are scheduled to meet next Tuesday in Paraguay to iron out the final proposal to be presented by the group to the European Union for the long delayed trade and cooperation agreement. The meeting in Asunción will be headed by Rigoberto Gauto, who is currently the Mercosur coordinator since Paraguay holds this half year the rotating chair.
Brazil' minister of agriculture Katia Abreu said she was very optimistic about Mercosur reaching a trade agreement with the European Union, and if there are problems look to Europe, because Mercosur members have almost agreed and finished their proposal.
Paraguay is committed to return Mercosur to 'its roots', reach an agreement on some of the original fundamentals, eliminate restrictions to inter-trade and strongly promote the trade accord with the European Union. This is scheduled to take place in the coming six months once Paraguay is handed Mercosur' chair at the group's midyear presidential summit that begins on Thursday in Brasilia.