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Europe Daily Bulletin No. 8429
Contents Publication in full By article 20 / 41
GENERAL NEWS / (eu) eu/latin america

Political dialogue, trade, social cohesion and impact of enlargement to be discussed at ministerial meetings on Thursday and Friday

Brussels, 25/03/2003 (Agence Europe) - The international situation and the agreements being negotiated or implemented will be the main subjects of the EU/Latin America meetings scheduled to take place on 27 and 28 March in Vouliagmeni, near Athens. Ministers or their representatives will also speak of negotiations at the WTO on agriculture, services, access to medicines and the "Singapore Agenda" (competition, investment, public procurement, etc.). Trade Commissioner Pascal Lamy is expected to restate that the EU presented, in his view, a "substantial" proposal in the agricultural field, a point of view that the Latin American countries do not share, especially the members of the "Cairns Group" such as Argentina, Brazil and China. External Relations Commissioner Chris Patten is also to present a "political initiative" in order to place social cohesion at the centre of the next EU/Latin America summit to be held in Mexico in 2004.

Just a few days before the Accession Treaty is due to be signed, on 16 April, Europeans will seek to reassure their Latin American partners on the subject of the impact that enlargement will have on trade and cooperation agreements, which will be automatically enlarged to the ten accession countries. "Our message is that enlargement will be a positive thing, since it will increase the size of the market. Also, WTO mechanisms provide mechanisms to compensate for the higher customs duties of the accession countries", it is said at the Commission.

Greek Foreign Minister Georges Papandreou will chair the meetings on the European side. Only Spain, Portugal, Austria and Ireland are expected to be represented by a minister from the European side. The foreign ministers of the Latin American countries are, on the other hand, all already announced. Points on the agenda are:

EU/Mexico: The ministerial meeting will open the series of meetings on Thursday morning. Both parties will take stock of implementation of the association and free trade agreement in force since 2000. The European Union is expected to call for explanations on the increase in Mexican customs duties especially on dairy products. It considers that the "standstill" clause on products that have not yet been liberalised, was not complied with. In particular, both parties will evoke the future negotiations on services, a subject left to one side when the agreement was concluded, pending the result of negotiations at the WTO. The result of civil society dialogue, launched last November, will also be on the agenda.

EU/Andean Community: The parties will take stock of preparations for negotiation of the new agreements to be launched from 6 to 8 May in Brussels. The aim is to strengthen political dialogue around themes relating to security, regional development and stability, conflict prevention, human rights, democracy, good governance, terrorism, immigration and the fight against drug abuse. Modernising the agreement in force since 1998, the new agreement should also strengthen cooperation in favour of regional integration and trade relations. "We are willing to help the Andean Community in its integration process, mainly by improving trade, but it is up to them to decide on the rate and the timetable for their integration", it is stressed at the Commission. Pascal Lamy should recall that negotiation depends on one hand on the conclusion of the Doha Development Agenda and, on the other, on the level of integration by the Andean Community. The Andean countries should certainly raise the question of "graduation" of the generalised system of preferences (GSP) which rules out the regime of the most competitive products. "The rules of graduation are clear and transparent, they are not there to punish but to allow exports to be diversified", the Commission is already saying to defend itself, stressing that the EU is compelled to apply the rules to the letter, especially at a time when the GSP is under attack from certain countries such as India before the WTO's dispute settlement body.

EU/Chile: European and Chilean ministers will take stock of implementation of the association and free trade agreement in force since last February. On the occasion of this first Association Council they will adopt the operating rules of the various bodies set in place by the agreement.

EU/Mercosur, Bolivia, Chile: During a working lunch between the EU, Mercosur and the countries associated to Mercosur, ministers will take stock of negotiations under way on the association and free trade agreement between the EU and Mercosur (see yesterday's EUROPE, p.11). The initiative of the Brazilian and Argentinean presidents, Lula and Duhalde, in order to reactivate integration of the South American common market, is also to be discussed.

EU/Rio Group: Friday will be devoted to the meeting between the EU and the Rio Group including all the Latin American countries. Mr Patten is expected to propose that promotion of social cohesion be at the centre of the next EU/Latin American/Caribbean summit. "Social cohesion is a common and additional interest that should be at the centre of our strategic partnership in 2004", he said in a press release. A Commission/Inter-American Development Bank seminar will be held on this theme in June, in Brussels.

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