Brussels, 24/03/2003 (Agence Europe) - The ninth round of negotiations between the EU and Mercosur on an association and free trade agreement in Brussels on Friday ended on a largely optimistic note. The next session will take place in Asunciòn from 23 to 27 June. In the meantime, the parties must present their requests for improved bids for tariff dismantling by 15 May, and for new requests for services and procurement contracts by 30 April.
This week of negotiations was important, as both sides have just presented their new tariff dismantling offers (see EUROPE of 15 March, p.12), commented the European negotiator, Karl Falkenberg. "Mercosur has made major efforts to make a good offer covering 85% of trade", he said. There is a certain asymmetry between the offers, in that Mercosur proposes abolishing customs duty on 10% of European exports to begin with, rising to 66% after ten years, whereas the EU is suggesting opening up the borders to 60% of Mercosur exports now, and 10% in ten years. "This does not, however, change the fact that we feel Mercosur has made a solid offer, which is a good basis for further negotiation", said Mr Falkenberg.
"The four Mercosur countries have made a massive effort to align their positions", said Rigoberto Gauto, Paraguay's Vice-President for Economic Affairs, reassuring the Mercosur Presidency. He stated that Mercosur hopes, for its part, for greater gains in those agricultural sectors where it is most competitive, such as meat, sugar, oilseed, dairy products or tobacco.
Karl Falkenberg expressed the view that it was "useful to clarify the links between the Doha multi-laterals and the EU/ Mercosur bi-laterals". It is clear that the bi-regional negotiations "allow us to go beyond our multilateral negotiation capability, as it is easier for two to improve market access than 150".
Under the programme set last summer in Rio, both parties have also decided on the content of the future agreement in terms of commercial rules (rules of origin, phyto-sanitary measures, wines and spirits), procurement contracts, investment, service, e-commerce and dispute settlement. "Substantial progress has been made in the ways and means of negotiations for investment and public procurement", stated a joint press release. "We have a lot of work left to do, but we are on the way to having a legible text, with entire passages in square brackets where there are still some differences of opinion", indicated Karl Falkenberg.