France and six other countries expressed concern before the European Union about the competition consequences for the farm sector in the event of an agreement with Mercosur.
French resistance to the resumption of Mercosur European Union trade talks caused great disappointment among the block’s members, but Brazil believes it has a strong bargaining chip for a greater opening of the European agriculture market: the several billions US dollars fighter planes contract for the Brazilian Air Force.
Leading Brazilian presidential candidate José Serra said it was “very good” for his campaign that Venezuela’s leader Hugo Chávez should openly support his main competitor incumbent hopeful Dilma Rousseff and again warned about the shortcomings of Mercosur.
After the European Commission proposed the resumption of negotiations with Mercosur, France released a warning message to the European Commission and assured that—if the talks are reactivated—both French and European agriculture would be in danger of a potential damage.
France’s main farmers’ organization, FNSEA, called Wednesday on President Nicolas Sarkozy to pressure upon the European Community to impede the re-launching of negotiations for a free trade agreement with Mercosur
Paraguayan opposition and media strongly criticized Brazilian president Lula da Silva’s for not keeping his Itaipú dam-controversy promises and allegedly for conditioning further assistance to the approval by the Paraguayan congress of Venezuela’s incorporation to Mercosur.
The European Commission (EC) has proposed to reactivate its negotiations with Mercosur, stagnant since 2004, with the objective of reaching an association agreement. In its weekly meeting, the EU executive decided to re-establish discussions with Mercosur since it considers “that an eventual pact could generate economic benefits for both parts,” according to an EC communiqué.
Brazilian president Lula da Silva is expected in Montevideo, Uruguay Tuesday afternoon to hold talks with his counterpart Jose Mujica, following the Unasur extraordinary presidential summit in Buenos Aires.
President Lula da Silva reassured Paraguay that Brazil will build the promised 500 kW power transmission line from the Itaipú dam to the capital Asunción, as well as a bridge over the Paraná River shared by both countries.
Uruguay is pushing for a full Indian mission in its capital Montevideo, showcasing the country as the gateway to the region and to expand bilateral trade and economic relations, according to New Delhi reports.