Brussels, 16/07/2001 (Agence Europe) - In Brazil, where he was on visit this week, the European Commissioner for Trade, Pascal Lamy, underlined the magnitude of the partnership that the Union is offering the Mercosur, while warning the Latin American countries against the cost of a continental free trade area. I am entirely prepared to see in the ALCA a framework for the development of relations between the North and South of the American hemisphere. Though I have doubts over the cost and benefits of such North-South integration, he said, before the industrialists from Sao Paulo (FIESP). He also called, by plebisciting the path of regionalism followed by Brazil, Argentina, Uruguay and Paraguay within the Mercosur: Not to contrast this form of regional integration between neighbours and peers with a continental integration under the auspices of the United States. The Union knows that a delicate balance must be found between, on the one hand, an overly rapid and excessively deep integration going as far as the adopting of standards and harmonised and common regulations, and, on the other hand, the juxtaposition of bilateral agreements eliminating the barriers at borders, he explained, while also returning to the risk of forming a dominant pole and a dependent periphery. To counter this, he said, ambitious accompanying policies and strong financial solidarity are necessary, but solidarity requires North-South financial transfers. Also warning: the ALCA, or any other bilateral project, must not weaken the still fragile unity of the Mercosur.
The negotiation between the EU and the Mercosur forms part of the wider cooperation agreement that includes a aspect of political dialogue and an aspect of technical and financial assistance, emphasised the Commissioner, who noted that the Mercosur forms a new pillar in a multilateral and multipolar world, so much so that in negotiating with the Union as such, it reinforces the multipolar nature of the international system. From where arises the importance of consolidating this entity, that is to say move to a complete customs union and progress towards a true common market, continued the Commissioner. According to him, the Mercosur has a major interest in reinforcing the multilateral trading system, through an active participation in the new WTO round, in order to provide a framework to its negotiations with the EU, on the one hand, and with the United State, on the other, as we know that it would be all the more easy to conclude (them), when a new round of multilateral negotiations has also been concluded.