Brazil Hoping to Sign a Mercosur-EU Agreement by 2006

    Given the discouraging prospects of the coming trade liberalization negotiations in the framework of the World Trade Organization, Mercosur and the European Union decided in Brussels to resume the interrupted talks.

    Since 1995 Mercosur and EU have been holding talks to create the world’s largest free trade area with 680 million people, which currently has an annual bilateral trade of US$ 40 billion.

    “We did a sincere and realistic review of the situation and agreed on a road map to advance,” reported Argentine Economy Minister Roberto Lavagna who headed the Argentine delegation to the ministerial meeting in Brussels last Friday.

    The original plan not only includes trade but also a political and cooperation association, which should have been signed by the end of 2005.

    However in the Brussels summit no deadline was established but rather a calendar of technical and ministerial meetings to be held between next November and early 2006 to advance “towards an ambitious and balanced” agreement.

    “The most important outcome of the meeting was that the EU accepted the concept of a “special and differentiated” treatment for Mercosur, said Mr. Lavagna’s office.

    This basically means that since the European block is so much more developed and integrated, they should liberate trade at a quicker pace than the South American block, emphasizing on those areas of greater interest for Mercosur such as agriculture and agro-industry.

    Before the meeting Mr. Lavagna had anticipated he would be requesting the agreement helped to “reduce socioeconomic differences” between both blocks.

    Brussels is demanding greater protection for investments; participation in government procurement and liberalization of financial and telecommunication services, as well as a reduction in industrial goods’ tariffs, which is considered a sensitive area for Brazilian and Argentine industry.

    “There’s substantial progress to be achieved”, said Benita Ferrero-Waldner EU Foreign Affairs Commissar.

    Brazilian Development Minister Luiz Fernando Furlan admitted that with this new focus “there are great possibilities of signing an agreement in 2006”.

    Mr. Lavagna who arrived in Brussels suggesting that Mercosur-EU trade relations had to be “rebalanced” incorporating new items such as “differential treatment”, before returning to Buenos Aires said two objectives had been achieved, “relaunch politically the negotiation and ratification of the strategic interest” in the discussions.

    EU Trade Commissar Peter Mandelson was head of the EU delegation.

    This article appeared originally in Mercopress –


    • Show Comments (0)

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.


    You May Also Like

    Brazil Expecting 5% Inflation for 2005

    The director of economic policy in the Brazilian Central Bank (BC), Afonso Bevilacqua, reaffirmed ...

    Brazilian cattle

    In a Decade, Brazil Expects to Grow by 70% Beef Offer, to 14 Million Tons

    The annual production of beef in Brazil should be around 14 million tons in ...

    On Advice of Counsel

    1. President Lula should legalize all immigrants living in Brazil. 2. Should assist Brazilians ...

    Guarani Indian children in Mato Grosso do Sul, Brazil

    Brazilian Indian Women Raped While Waiting to Get Land Back

    Two old Indian women from the Guarani people, in Brazil, were raped by security ...

    Brazilian submarine Tikuna

    In Show of Force, Brazil Goes to War Games in Defense of Newfound Oil

    Petrobras, the Brazilian state-controlled oil and gas multinational, made headlines last November when it ...

    Miguel Jorge with Iran's Mehrabian

    Iran Wants to Use Brazilian Ethanol to Circumvent US Trade Blockade

    The Iranian government is interested in using Brazilian ethanol in its vehicles. This information ...

    Road construction in Brazil

    Brazil Expecting Close to US$ 1.5 Trillion in Investments Up to 2011

    Private and public investment in dynamic sectors of the Brazilian economy should grow 18% ...

    Naomi Gathers Friends to Promote and Help Brazil

    Brazilian President Luiz Inácio Lula da Silva received Tuesday, April 26, at the Planalto ...

    New Varig’s First Move: To Cancel All Domestic and International Flights

    In a swift and surprising move, the new owners of Varig Brazilian Airlines, just ...

    Brazil's Supreme Court in capital Brasília

    Welcome to Brazil, a Paradise of Impunity for All Kinds of Criminals

    Brazil has faced an explosion of violence and criminality over the last two decades, ...