Brussels, 19/04/2011 (Agence Europe) - Argentina is “the greatest obstacle” to the conclusion of an association agreement comprising a broad commercial plank between the EU and the Mercosur bloc (Argentina, Brazil, Paraguay and Uruguay): “Argentina's protectionism is creating problems and they are making our exporters nervous, especially in the automotive industry”. Reported in the Argentinian daily newspaper Clarin, the speech given by Karel De Gucht to the delegation of the European Parliament in charge of relations with the Mercosur countries on 14 April fed into the start of a row between Brussels and Buenos Aires. Discussing purely bilateral friction with Argentina to do with the non-tariff obstacles which the EU has complained about, particularly import licences for many European products, De Gucht also raised the possibility of bringing the matter before the WTO. This speech went down fairly badly with the Argentinian authorities, who laid into him, despite the reaffirmed commitment by the commissioner in favour of an agreement in 2011. De Gucht is “trying to divide Mercosur members”, complained the Argentinian trade secretary, Luis María Kreckler, on 15 April. “The EU has not been able to give a consensual offer, especially in the agricultural sector”, Kreckler added, urging the European commissioner to “avoid creating an atmosphere of pressure and dividing strategies”. “The Commission is concerned by the steps taken by Argentina as to their impact on bilateral trade, but trusts that this will not impact negatively on the EU-Mercosur trade negotiations or on Argentina's commitment to this process” commented De Gucht's spokesperson, John Clancy on Monday 18 April. “The EU remains determined to reach an ambitious and balanced trade agreement with Mercosur and to the exchange of market offers within the next 60 days to ensure that the negotiation process advances”, Clancy added. European and South American negotiators will be meeting in Asunción, Paraguay, from 2 - 6 May, where the issue of Argentinian protectionist measures will be on the agenda. (E.H./transl.fl)