Mercosur, EU try to break deadlock

Representatives of South America’s Mercosur trade bloc and EU negotiators prepared last 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 were expected meet in Brazil’s capital last Tuesday through last 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.