Brazil's National Confederation of Industries, CNI, supports a review of Mercosur rules such as the current impediment for member countries to negotiate trade agreements with third countries, and fervently backs an urgent full trade and cooperation agreement with the European Union.
Foreign Secretary William Hague arrived in Brazil for a three-day visit to further the strong and growing partnership between the UK and Latin Americas leading economy. This is Mr. Hague's second visit for a series of meetings and events which started at Manaus where he visited the Arena Amazonia stadium, host of England's first 2014 World Cup match against Italy on June 14.
In what was described as a shameful incident, Brazil had to retract from statements made by one of its diplomats, a condition demanded by Argentina to continue negotiations for a Mercosur common tariffs reduction proposal which was taking place in Caracas. The incident occurred last week but only came to light over the weekend.
Uruguay and Brazil could be prepared to go ahead with a 'two speed' trade negotiations between Mercosur and the European Union if the Argentine tariff proposal is not as ambitious as that from the rest of its members, according to Uruguayan diplomatic sources.
Mercosur through its pro-tempore presidency under Venezuela is involved in a round of contacts to agree on the group's much delayed XLVI summit which has been postponed because of problems with 'presidents' agenda', revealed Paraguayan foreign minister Eladio Loizaga.
The Brazilian government is determined to advance with negotiations for a trade agreement between Mercosur and the European Union even if it means leaving Argentina for a second phase of the process, according to sources from Itamaraty, the country's foreign ministry, reported in the Rio do Janeiro media.
Uruguayan foreign minister Luis Almagro said it should not come as a surprise if the negotiations for a trade agreement between Mercosur and the European Union does not include all four original full members and leaves one out, although the objective is for all members to be part of the accord.
Paraguay's Foreign minister Eladio Loizaga said on Monday that at the latest in early February Mercosur and the European Union would be exchanging their tariff reduction proposals for the much delayed free trade agreement. The deadline originally was December but it was delayed on request from Brussels.
Argentina's Foreign Ministry refuted an article by Brazilian newspaper Valór Económico reporting that negotiations between Mercosur and the European Union had been delayed by the failure to reach agreement with Argentina over a joint proposal of goods to include in a free trade agreement
When Mercosur finally holds its much delayed summit in Venezuela at the end of the month following two postponements (12 December and 17 January), besides its normal agenda of agreements and disagreements, it will have to address a new challenge, this time from the European Union which has redefined its development support policy, leaving all Mercosur members, except Paraguay out of its tariffs and market access benefits.