On Friday 2 March, a source close to the issue at the European Commission said the two-week round of technical level negotiations, in Asunción from 20 February to 2 March, on the trade section of an association agreement between the EU and the Mercosur bloc (Argentina, Brazil, Paraguay and Uruguay) had not enabled the expected breakthrough that would have led to Commissioners Cecilia Malmström (Trade) and Phil Hogan (Agriculture) travelling to the Paraguayan capital to finalise a political compromise.
On 27 February, Malmström announced that she was ready to go to the Paraguayan capital should there be a significant breakthrough (see EUROPE 11970).
"The negotiation teams have worked well, but not enough to mobilise the commissioners", the same source told EUROPE, adding that "no new date has been fixed at this stage" for the continuation of the talks.
"There is no movement on the EU's demands" for Mercosur concessions on market access for EU cars and car components, including rules of origin and related transition periods, market access for its dairy products, the protection of geographical indications and access to public procurement.
Mercosur meanwhile wants further EU concessions on access to its agricultural market, especially for beef, ethanol and sugar.
However, "the South American bloc is in the grip of big divisions, each seeking to pull in different directions", a European source close to the issue stated on Friday.
"There is big blockage from Brazil on automobiles, a big blockage from Uruguay on dairy products and Paraguay is not managing to preside over them", the source said.
The window of opportunity is becoming smaller for an agreement in principle before the beginning of the campaign in March for the general elections in Brazil, and the general elections in Paraguay at the end of April. (Original version in French by Emmanuel Hagry)