The EU and Mercosur (Argentina, Brazil, Paraguay and Uruguay) negotiators are continuing their work on the technical level to reduce the gaps with a view to the conclusion of an agreement on the trade section of an association agreement, but no date for a new session of talks had yet been fixed on Tuesday 20 March, a European Commission source told EUROPE.
Progress was made at the last round of talks in Asunción at the end of February-early March (see EUROPE 11973) but "much work remains to be done". Since then, the chief negotiators have remained in contact to examine how to progress on the outstanding issues, according to this source.
The window of opportunity is becoming smaller for an agreement in principle before the start of the campaign in March for the general elections in Brazil (in October) and the general elections in Paraguay (at the end of April).
"The negotiations are blocked for different reasons. We are awaiting the decision of the South Americans", France's Economy Minister Bruno Le Maire stated on the sidelines of the G20 Finance meeting in Buenos Aires on Monday 19 March.
"We believe in free trade based on total reciprocity, which means that the rules applicable in France or in Europe must be applied in Argentina and in Brazil. If the rules are not the same, we must find a compensatory measure", Le Maire added.
On the South American side, leaders from Argentina, Brazil and Paraguay have spoken in recent weeks of still being committed to the agreement. Paraguay's Foreign Affairs Minister Eladio Loizaga, whose country currently holds the six-month presidency of Mercosur, said on 9 March that he hoped an agreement could be finalised "within three to four weeks" (see EUROPE 11982). (Original version in French by Emmanuel Hagry)