Brasília - It now looks like Mercosur and the European Union will not reach a trade agreement by the October 31 deadline set for the Inter-Regional Association talks between the two economic blocks, reports Regis Arslanian, the director general for International Negotiations at Itamaraty. Arslanian says the problem is that the latest offer by the EU is simply "a step backward."

Brazil and its Mercosur partners, Argentina, Paraguay and Uruguay, seek rapid access to new markets for more goods, explains Arslanian. But the EU is offering less over a longer period of time. For example, at the moment Mercosur exports 95,000 tons of beef to the EU annually free of surtaxes. The EU is offering to import 60,000 tons annually over a ten year period. The consensus in the Brazilian business community is that the offer is unacceptable, says Arslanian.

In spite of the difficulties, Mercosur and the EU continue to negotiate. Next Tuesday a new round of talks will take place at the Business Coalization center in Brasilia.

Agência Brasil
Reporter: Marcos Chagas
Translator: Allen Bennett
10/01/2004