Brussels, 06/01/2012 (Agence Europe) - With talks on a free-trade agreement with the EU somewhat in the doldrums since their resumption in May 2010, Mercosur elected in December to go down the path of temporary protectionism to try to overcome the trade imbalances resulting from the global economic situation.
This is a decision that will not help to jump start negotiations on a trade agreement between the EU and the four countries of the Latin American block which are struggling to put together their offers on access to the agricultural and industrial markets. At the Mercosur summit in Montevideo on 20 December, the leaders of Argentina, Brazil, Uruguay and Paraguay agreed a temporary increase in import taxes on goods from outside their common market to protect their national industries: “A brave and prudent decision which is in line with WTO rules”, assured Brazilian President Dilma Rousseff following adoption by the summit of a resolution “which permits member states temporarily to raise the levels on taxation on imports above the common external customs taxes on imports from outside the area of the customs union”. Taxes may be increased by up to 35%, the maximum permitted by the WTO. The temporary increase may last up to a year, renewable once. In the second half of 2011, Argentina adopted monetary anti-dumping measures and limited authorisations for the import of goods from China, while Brazil announced in September that it was introducing a 30% rise in taxes on imported vehicles at least 65% the parts of which of which do not come from Mercosur and that it was putting in place restrictions on textile imports.
Talks on an EU-Mercosur association agreement, which includes a substantial trade chapter, made progress at the 7th round of negotiations in the Uruguayan capital Montevideo at the start of November 2011, with the finalisation of texts on the general principles on anti-dumping, compensation and safeguard measures, customs, and above all services and investment and the rules of origin, and an initial discussion on public procurement. EU and Mercosur negotiators will meet again in Brussels on 12-16 March. (EH/transl.rt)