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”.
“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.
Peruvian president Alan Garcia criticized spiralling military expenditure in South America, a fact he linked to the recently created Union of South American Nations, Unasur.
The European Union and Mercosur will officially re-launch negotiations for a trade and cooperation agreement they have been discussing since 1999 in the coming Madrid summit, in spite of fears about their farm sectors from several European countries, said the EU representative for Paraguay and Uruguay.
Ten European countries, fearing the impact on agriculture, are openly challenging the EU decision to resume trade talks with Mercosur which is to be officially announced next Monday when the opening of the Latin America, the Caribbean and the European Union Summit in Spain.
Mercosur rice planters will be meeting to decide a Brazilian proposal to increase the common external tariff thus preventing the introduction of rice from third countries, precisely this year when Brazil’s crop is expected to be below average.