Brussels, 24/07/2002 (Agence Europe) - During Tuesday's meeting in Rio de Janeiro between the Mercosur Ministers (Argentina, Brazil, Uruguay and Paraguay) and Commissioners Pascal Lamy and Chris Patten, the European Union and Mercosur reached agreement on a timetable for making negotiations move forward on the association and free trade agreement. Negotiators are to meet in Brasilia in November, in Brussels in March 2003, then in Asunción in May 2003. A further meeting "at ministerial level" will be held during the second half of 2003 in Europe to take stock of work. Work will cover market access in the field of industrial and agricultural products and will specify methods of negotiation for liberalisation of services, public procurement and investment.
In all its modesty, the result was unhoped for at a time when the economic situation of Mercosur is particularly fragile and where negotiations seemed to be at a standstill. The delegation of the European Union insisted before leaving on the need to focus talks on trade rules and discipline, in order to "facilitate" trade without entering into tariff issues, while Mercosur hoped to tackle face on the question of customs duties and subsidies on agricultural produce. "WTO negotiations, with the EU or with the members of the free trade agreement with the Americas does not incite optimism", the Brazilian Trade Minister, Sergio Amaral, had said the day before. Argentinean Foreign Minister Carlos Ruckauf had attacked the "hypocrisy" of farm subsidies in industrialised countries, including the EU.
At the end of the day, "we are moving forward positively, with a timetable and specific discussion themes for negotiation" noted the Brazilian Foreign Minister, Celso Lafer. The two parties agreed to speed up talks on goods, services, and recognition of names for wines and spirits, he said. "We have put the petrol back in the tank", commented Commissioner Patten. No date was fixed for the end of negotiations, and Commissioner Lamy stressed that "we have always said our position will change during negotiations at the WTO, but taking the rate of our agricultural reforms into account". He invited Mercosur, however, to sweep up its own back yard and stressed that "the more integrated Mercosur is, the more Europe will be determined to consolidate its relations with Mercosur".