Rio, December 5, 2002 (Agência Brasil - ABr) - The minister of Foreign Relations, Celso Lafer, said yesterday (4) that trade relations between Brazil and Argentina should be totally re-established beginning the first half of next year. For the minister, Argentina's economic situation is improving, with the end of the "corralito" and an upsurge in exports and bank deposits.

Lafer recalled that the Brazilian government revived a mutual credit accord with the Argentines, gave new direction to the automobile accord, and cleaned the slate of pending issues with Argentina. With regard to the FTAA (Free Trade Area of the Americas), he said that the current Brazilian administration is still willing to negotiate, provided that the country's interests are respected. "The FTAA issue is very complicated, because Brazil's productive structure is very diversified. We have interests in all the areas in which there are negotiating groups," he observed. (DAS)