Brussels, 14/03/2003 (Agence Europe) - The EU and Mercosur are to start their first real discussions on tariff dismantling in Brussels next week, in the framework of the 9th negotiation session of an association and free trade agreement to take place in Brussels. At the beginning of the month, both sides put forward their offers for lifting customs duties. The EU had already presented an offering covering 91% of trade in July 2001, Mercosur's offer went from 37% of tariffs to 83.5%. However, it puts around 66% of products in categories which will not be liberalised for ten years, including a large chunk of the automotive, textile, wines and spirits, pharmaceutical and petrochemical industries, for example. 17% of the most sensitive products for Mercosur have been excluded from the offer, including various chemical products, heavy machinery, machines, or semi-processed agricultural products.
Mercosur presented a text in parallel which qualifies its offer with additional concessions on export refunds in the agricultural sector, agricultural safeguard measures, and the reduction not only of "ad valorem" customs duty, but also of "specific rights" on products such as meat, orange juice or seasonable goods. It will also be asking for accelerated liberalisation for meat. According to the timetable set last summer, both parties should submit their requests for improvement in the tariff offers between 15 April and 15 May, together with any new proposals for liberalisation of services or investment.
The ambitious agenda for this negotiation session also focuses on: the implementation of trade facilitation measures (many proposals have been made; customs procedures, phyto-sanitary measures, technical standards, electronic commerce), conflict resolution mechanisms, rules on services, public markets and investment, anti-dumping and safeguard measures, rules of origin, wines and spirits. Certain consolidated texts have already been presented by both parties.
"Substantial offers have been made by both sides, it is now a question of getting down to brass tacks and clarifying the requests that have been made", says the Commission. The offers "show that both sides are serious, and their goodwill to complete negotiations in 2004 or early in 2005", confirms a Mercosur diplomat, agreeing that Mercosur "is well aware that the EU's mandate is linked to the conclusion of the Doha cycle at the WTO".