On Tuesday 18 July, a source close to the issue told EUROPE that European and South American negotiators will move ahead in September to a review of the market access offers that have been tabled (for agricultural and industrial products, services and public procurement) as part of the free trade talks between the EU and Mercosur (Argentina, Brazil, Paraguay and Uruguay – Venezuela being suspended from the Latin American bloc).
"We will again discuss the offers on market access that were exchanged in May 2016. We explain what we expect from the other party. In early September, we will see how we can move forward with a view to new offers on market access", this source stated, giving assurances that the EU's sensitive products, such as beef, will be exempted from full liberalisation.
The EU and Mercosur negotiators will come together in Brussels for 'intersession' working meetings on 4-8 September, before a fourth full round of talks (since the launch of the negotiations in 2010 and the exchange of offers in May 2016).
"We think that finalising an agreement in principle is ambitious, but it's not infeasible. There is very strong political commitment from both parties. There is intensive work and lots of meetings, and we are making progress across the board", the source stated. Unlike this same negotiation in the 2000s, "there is no area where we are not making progress. Discussions are taking place on the chapter on sustainable development, and progress is being made on complicated issues such as geographical indications", the source added.
Overall, "there are a number of factors that speak in favour of concluding a free trade agreement", the source continued, highlighting the constructive role being played by Argentina.
"Argentina has understood that it could not live in isolation and that it needed to be integrated in the global economy. This presupposes the conclusion of agreements with a partner like the EU – agreements which enable trade and investment opportunities in both directions", the source said.
On the European side, "with the reforms that have been made in the agricultural sector, it is easier to respond to Mercosur's requests. But there will be no full liberalisation of sensitive products like beef or ethanol. Mercosur has understood that we have limits and sensitivities that it is important to take into account", the source concluded.
On Tuesday, the Commission published the progress report from the third round of talks that were held in Brussels on 3-7 July.
During the visit of European Trade Commissioner Cecilia Malmström to Buenos Aires on 20 April, she and Argentina's Foreign Affairs Minister Susana Malcorra confirmed their commitment at political level to concluding an agreement by the end of 2017.
Visiting Madrid on 3 July, Malmström underlined the benefits of an EU-Mercosur free trade agreement, the negotiations for which were relaunched in spring 2016 after a long freeze of around ten years (see EUROPE 11821). (Original version in French by Emmanuel Hagry)