Mercosur and EU feel 2017 as a "window of opportunity” to push ahead the idea of "irreversibility" of a trade agreement

Negotiations for an ample trade and cooperation agreement between the European Union and Mercosur are strategic, essential and must be urgently concluded, said Ramon Jauregui, head of the Euro-chamber for Latin America delegation, following on the recent accords signed by the EU with Ecuador and Cuba.

 “Mercosur is of enormous significance for Europe and we are entering a context of uncertainty with the arrival of Donald Trump to the White House”, pointed out Jauregui, a member of the European Parliament who added the urgency of signing the agreement which is pending since 1999 and was re launched in 2010.

Jauregui admitted that items such as beef, rice and sugar are considered “vulnerable” for Europeans and non-negotiable for Mercosur, despite the fact that the EU Agriculture Commissioner Phil Hogan last November called on the South American block to moderate its aspirations.

However Mercosur sources indicate that the three are part of an EU ten-item sensitive list and argue the accord has a raft of benefits for Europe regarding manufacturing, auto-parts, the chemical industry, among others.

Nevertheless Mercosur sources indicate that 2017 represents “a window of opportunity”, not necessarily to conclude the accord but to advance and give the talks credibility and a sense of irreversibility.

In effect and looking ahead to the new round of talks scheduled for next March in Buenos Aires, both sides have agreed to leave for further on the “sensitive lists”, which includes in effect beef and ethanol. Argentina is one of the world's leading exporter of ethanol.

But EU has its own problems: France is holding presidential and legislative elections in the first half of this year and has expressed concern about agriculture, a decisive sector for any aspiring political force wanting to reach Paris. Jauregui feels this is clear evidence of a lack of unity among the 28-member EU when they have to face a Trump administration in Washington.

Mercosur has a more positive approach according to statements from Brazilian foreign minister Jose Serra, “with Brexit and Trump's victory, friends must unite”. In effect Jauregui has pleaded EU Foreign affairs commissioner Federica Mogherini “to take advantage” of the current situation when all indicates that a Trump administration might very well emphasize a protectionist policy.

Likewise a potential vacuum in Latin America could be occupied by China, despite the close historic and cultural roots with Europe, and not forgetting that most of manufactured goods or with added value from Latam are exported to Europe, thus “Europe should stop looking at its belly button and concentrate in Latin America”.

Finally Jauregui recalls that 2017 took off with the EU trade agreement with Ecuador, and joins Colombia and Peru, and in coming months a similar scenario will take place with Cuba, conditioned to cooperation in human rights issues.

“Let's not forget the significance of these latest moves, since Trump has anticipated he will turn back all the agreements reached by the US with Cuba, under the Obama administration”.

Source: Mercopress Agency

Read More

The President of Mercosur's Parliament is critical of the current trade negotiations with the European Union

Jorge Taiana, President of Mercosur’s Parliament (Parlasur), said that the European Union’s current trade offer is “unsatisfactory” and made it clear that it shouldn’t be signed in its present form. Taiana complained that the negotiations, which resumed about seven years ago, are taking far too long, but added that in the absence of a “balanced agreement”, nothing should be signed.

The lawmaker said that the EU’s offer of “small tolls on unprocessed products” and its demand that “Mercosur open up its industries and services” would negatively affect “integrated and balanced development”. He also added that he is “not optimistic that there will be progress” as a result of the economic recession that has hit Europe.

In this situation, Taiana indicated that more regional measures and promotion of trade in materials and services between Latin American countries would be more viable. In the case of Argentina, he insisted that the business relationship with Chile “will not change”, regardless of the talks going on with the EU.

German Eurodeputy Bernd Lange (SPD), chair of the European Parliament’s Committee on International Trade, said he was more optimistic than Taiana and indicated that he is hopeful that these new negotiations will not last as long as those that were needed to finally secure the Canadian trade deal, known as CETA.

Lange insisted that the fact our world is ever-more globalized is a reason to broker agreements that “configure” this phenomenon and which do not just focus on “stronger” economic benefit, but more on “fair trade”.

The German lawmaker said that next March there will be new meetings and highlighted that the Parliament is “a key player” in managing the relationship between the two parties.

Parlasur is comprised of 81 Deputies, 18 from each member state and 9 from candidate member Venezuela. It was established to boost the political autonomy of Mercosur and its first session was held in early 2007, but its initiative is very much limited.

Source: Mercopress Agency

Read More