The European Union (EU) and the South
American trade alliance Mercosur failed Saturday to breathe new life into
negotiations for an Association Agreement between the two blocs.
The discussions were launched in 1999 but have stalled pending the results of
the Doha Round of world trade talks.
Argentine President Cristina Fernandez de Kirchner - whose country currently
holds the pro tempore presidency of Mercosur - met with Prime Minister Janez
Jansa of Slovenia, which presides over the EU Council, and with European
Commission President Jose Manuel Durao Barroso in Lima.
Mercosur and the EU timidly agreed to reactivate talks but set no deadlines.
In separate trade negotiations with other economic groupings in Latin America, the European Union did make more concrete progress. A 2009 deadline was set
in talks between the EU and the Andean Community and between the EU and Central America.
Such progress was elusive however with Mercosur, which includes Brazil, Argentina, Paraguay and Uruguay. Venezuela's entry is pending ratification.
The EU and Mercosur stressed the need for an Association Agreement that is
"ambitious and balanced" and vowed to pursue successful negotiations
"as soon as the conditions allow."
They further expressed their commitment to the Doha Round of talks at the World
Trade Organization (WTO) and agreed to boost political dialogue as a tool for
mutual understanding.
Overcoming poverty, inequality and hunger, achieving economic development and
preventing climate change were mentioned as common goals for the EU and
Mercosur, alongside the promotion of sustainable and renewable sources of
energy.
Talks between the two blocs started almost 10 years ago, at the first EU-Latin
America and the Caribbean (EU-LAC) summit in Rio de Janeiro in 1999, and were
supposed to have concluded by 2004. The fifth EU-LAC summit was held Friday in Lima.
However, simultaneous talks at the Doha Round - with obstacles like
agricultural subsidies in developed nations and other countries' reluctance to
open their markets for goods and services - have hampered the process. Brazil in particular plays a leading role among emerging economies at the Doha Round.
Despite the failure to make clear progress towards an Association Agreement,
the EU is Mercosur's main external trade partner, and receives 24 per cent of
Mercosur's exports that leave its own borders. The European bloc is also the
main investor in Mercosur, dpa reported.
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