Brussels, 15/03/2001 (Agence Europe) - The four Mercosur countries (Argentina, Brazil, Paraguay and Uruguay) this week put the finishing touches to three texts on competition, safeguard measures and technical standards that will be presented to the EU next week at the 4th round of negotiations over an association and trade liberalisation agreement, said Manuel Maria Caceres, the ambassador to Brussels of Paraguay, which holds Mercosur's present presidency. He did, however stipulate that the texts concerning the other chapters under discussion next week - dispute settlement body, market access and rules of origin - still need refining, and that, for now, there is no common position on public procurement or intellectual property, subjects that do not form part of the common competencies of Mercosur.
Negotiations are relatively well advanced, as "we have more texts after four sessions of negotiations than in the framework of negotiations for a free-trade agreement of the Americas after twelve sessions", Argentina's ambassador to the EU and WTO, Roberto Lavagna , assures us.
The European side is much less optimistic and openly complains of a lack of preparation by the Mercosur delegation. "We have only received proposals on three of the chapter that were to be broached next week" a European negotiator points out, scathing at the lack of coordination between the Mercosur countries and problems linked to the change in interlocutors, due the six-monthly rotation in the Presidency, Mercosur having no executive similar to the Commission.
For Argentina's ambassador, Roberto Lavagna, the dispute is sterile: "The EU chose to begin negotiations with chapters in which Mercosur is not integrated, whereas it postponed until July the one field where integration is the most advanced: the common external tariff".
According to Mercosur ambassadors, the main difficulties in future negotiations will be the liberalisation of agricultural products, acknowledged since the beginning of negotiations, as well as public procurement, intellectual property and the audiovisual sector. "The question of public procurement is a very difficult and complicated one for Brazil, where we have three levels of federal power", notes Brazil's ambassador to the EU, Clodoaldo Hugueney. In the agricultural sector, Mercosur intends, notably, securing a reduction in export subsidies on liberalised products. The "double zero" system, which provides for this simultaneous reduction on one side, and of customs duties on the other, "notably exists in association agreements with the candidate countries and with EFTA", Guy Legras, Director General for External Relations at the European Commission, recognises.
There is, however, a convergence of interests between the EU and Mercosur in ensuring product safety. Exploratory contacts are under way for the conclusion of health and plant health agreements between the EU and each country of Mercosur, agreements intended to gel into one once Mercosur has developed its competencies in the matter. Mercosur should next week brief EU negotiators on its degree of alignment in the matter. There are also ongoing contacts for the conclusion of the agreement on wine and spirits.
During the 4th round of negotiations, the two parties should, therefore,: 1) detail the agreements on the structure of the future political dialogue and cooperation; 2) exchange texts on competition, safeguard measures, technical standards and certification procedures; 3) pursue the exchange of information on rules of origin, customs procedures, intellectual property (and the lists of international conventions the two sides will agree to sign up to), investment and capital movement, public procurement, the dispute settlement body.
The EU, moreover, proposes turning to the state of liberalisation of key services sectors in the two regions: telecommunications, retailing, the environment, professional services, financial services. It will also formally present its initiative on the "facilitation of trade" (see EUROPE of 9 March, p.10), so far greeted with caution by the Mercosur countries.