Brasília, 5/4/2004 (Agência Brasil) - Mercosur and European Union representatives are meeting in Brussels this week for talks on the groundwork for a free trade agreement between the two economic blocks. The offers to be made will be fundamental for further decisions by heads of state and government which should occur at the end of the month of May.

At the moment, the EU is Mercosur's biggest trade partner. During the talks, which will last all week, Mercosur will seek expanded quotas for some farm products, such as coffee, sugar and meats. This is of great interest to Mercosur, in light of the fact that 48% of its exports to the EU is in farm produce.

On the other hand, the EU is interested in greater access to investments, government procurement and services.

Any understandings hammered out this week will be on the table in Guadalajara, Mexico, at the Latin American-European Union summit, when Mercosur-EU leaders discuss the future of the free trade union.

Translator: Allen Bennett