Brussels, 01/03/2002 (Agence Europe) - European Commissioner for Trade, Pascal Lamy, confirmed that the commitment of the European Union in Association Agreement negotiations on free trade with Mercosur remained "unchanged", despite the Argentinean crisis. During the first stage of a tour of Brazil, Argentina and, next Monday, in Chile (see EUROPE 27 February page 9), Mr Lamy asserted that the EU's commitment remained unchanged despite the difficulties currently being experienced in the region and that that relations should be further strengthened. He declared that, "there is still a way to go" in tariff and technical negotiations started two years ago and that an agreement between the two blocks on different levels of integration and economic development was a "real challenge". Mr Lamy indicated that the EU, nevertheless, wanted to encourage rapprochement as soon as Mercosur appeared to be able to provide the solution to the Argentinean crisis. Just before the visit began, the Brazilian negotiator, José" Alfredo Graca Lima said that it was "probable" that negotiations could be concluded by 2003 and enter into force by 2004. The Europeans think this forecast is over-optimistic. The two parties exchanged their ideas on liberalisation at the end of 2001 ( see EUROPE 1 November).
Pascal Lamy met with Brazilian President Enrique Cardoso, the Minister for Foreign Affairs, Celso Lafer, Minister for Overseas Trade, Sergio Amaral and the Minister for Finance, Pedro Sampaio, as well as candidates at the Brazilian elections in October and representatives from industry and civil society. He referred to the continuation of WTO negotiations begun at Doha and invited Brazil to "play a key role" in making development a priority. Certain differences between the EU and Brazil were tackled. Brazil is expected to take a decision on the subject in a few months and the European Commissioner called on Brazil to adopt European norms for digital television rather than Japanese or American standards. Alluding to the EU and Brazil's joint dispute with the USA over steel, Mr Lamy stressed that the USA would be unable to resolve the problem without creating problems for other countries and confirmed that the EU would appeal to the WTO if the USA went ahead with introducing anti-dumping duties, as recommended by the US Committee on International Trade.
On Friday and Saturday in Argentina, the Commissioner is expected to reiterate European solidarity during meetings with President Eduardo Duhalde, Foreign Affairs Minister, Carlos Ruckauf, Minister for the Economy, Jorges Remes Lenivoc and Minister for Production, José Ignacio de Mendiguren. The Argentinean authorities are expected to confirm their demand for an increase in the Hilton Beef quota from 28,000 tonnes to 40,000 tons.