
The outcome of a two-day European and Latin America lawmakers’ meeting in Uruguay was considered very positive and a strong message to forward negotiations on the sensitive EU/Mercosur trade and cooperation agreement.

Current trade negotiations between the European Union and Mercosur dominated the opening speeches at of Eurolat (Europe/Latin America Parliaments) Fifth Plenary Session which is taking place in Montevideo.

French president Nicholas Sarkozy stressed over the weekend he would not accept an European Union-Mercosur trade agreement that could mean a loss of income for European farmers.

French Foreign Trade Secretary Pierre Lellouche said he had witnessed ‘strong tensions’ among Mercosur members during negotiations with the European Union for a free trade agreement.

The existence of ‘inconveniences’ with Mercosur largest economies is delaying reaching a trade agreement with the European Union, according to Germany’s Ambassador before the government of Paraguay, Claude Robert Ellner.

Reports from the European Union and Mercosur confirm that negotiations for a trade agreement remain at ‘technical level’ and no information will be forthcoming until both sides have agreed on the lists of products to be exchanged.

The European Union/Mercosur trade talks taking place in Paraguay are attempting to advance with a ‘verbal exchange of proposals’ while negotiators continue ahead with technical aspects of a future agreement, according to Argentine sources.

European Union beef prices would be cut by more than 8% and meat production across the EU would fall in value by more than €3bn if a trade deal were agreed with Mercosur, according to preliminary assessments from an agriculture advisory body to the European Commission.

Bilateral negotiations for a trade agreement between Mercosur and European Union delegates are scheduled to resume Tuesday in Asunción, Paraguay.

A week before the next round of negotiations for an ambitious association and trade agreement between the European Union and Mercosur, a paper from the EU Joint Research Study centre, JRS, quantifies the alleged losses of such a deal for European farmers.