Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 76 Wed. August 11, 2004  
   
Business


S America trade bloc, EU try to break free-trade deadlock


Representatives of South America's Mercosur trade bloc and EU negotiators prepared Monday to break last month's logjam to create a free-trade zone between the two blocs.

"There is no room for negotiating tactics," said Regis Arslanian, the negotiator for Mercosur, which comprises Argentina, Brazil, Paraguay and Uruguay.

"They will have to put their cards on the table," he said.

The two sides will meet in Brazil's capital Tuesday through Thursday.

An EU-Mercosur agreement would eliminate tariffs between the two blocs and raise importation quotas for a limited number of agricultural products sold in Europe.

Arslanian said that Mercosur broke off last month's talks in Brussels because the EU offer was "insufficient." Europeans had sought even lower quotas than those currently in force.

In 2003, 70 percent of Mercosur exports to the European Union were primary goods, mostly agricultural.

However, of EU exports to Mercosur, 89 percent were secondary, or manufactured, goods, while only seven percent were primary goods with little value added.

Europe is seeking further concessions allowing it access to Mercosur's services sector, investments and government procurements.

Arslanian said the outcome of this week's meeting in Brasilia will determine whether a deadline for reaching an EU-Mercosur agreement will be met by October 31.

Mercosur will also try some sweet persuasian regarding the European refusal to negotiate sugar tariffs.

EU negotiator Joao Jose Pacheco is to meet Tuesday morning in Brasilia with representatives of Brazil's agribusiness sector.