Brasília, April 28, 2004 (Agência Brasil) - The vice president for International Affairs of the Brazilian Confederation of Agriculture and Livestock (CNA), Gilman Viana, declared yesterday (27) that negotiations between the Mercosur and the European Union (EU) have yet to make progress, because both blocs are defensive in their offers. "A more assertive offer [by the Mercosur] in terms of government purchases, services, and investments is needed, matched by greater market access for our products, with tariff reductions," he contends.

According to Viana, the private sector in Brazil prefers to negotiate tariff reductions on exports to Europe, rather than larger quotas. At the same time, the CNA recognizes that Brazil needs to establish regulatory standards for foreign direct investments in infrastructure, services, and government purchases.

Viana adds that the EU proposes a gradual diminution of subsidies. The opening of European markets is expected to occur 10 years after an agreement between the two blocs is signed.

EUROPEAN COMMISSIONER IN THE CNA

Yesterday as well, the European Commissioner for Agricultural Affairs, Franz Fischler, met with Brazilian agribusiness representatives in the CNA. The chief point of the debate is the European interest in government purchases, services, and investments in the Mercosur, while the South American bloc seeks greater receptivity for agricultural products.

The European Commissioner stated that the EU is willing to improve its offer, provided that the Mercosur also make a better proposal for the service sector, investments, and government purchases. "The European Union is ready to step up its offer in the agricultural area, mainly for products like beef and alcohol, but only if the Mercosur responds at the same level of aspiration. It's a two-way street," Fischler contends.

According to CNA vice president Viana, Fischler also indicated that the EU is willing to establish an annual quota of 1.2 billion liters of alcohol imports from Mercosur countries. This offer would be part of the improved proposal that to be made two weeks from now in Brussels, Belgium.

October is the deadline for concluding an agreement between the two blocs.

Translator: David Silberstein