Brasília, 5/5/2004 (Agência Brasil) – "For the European Union, the content of a free trade agreement with Mercosur is more important than deadlines," declared Jorge Peydro Aznar, who runs the office of the EU for Commercial Affairs with Brazil, in comments regarding the talks between the two economic blocks presently taking place in Brussels. However, Aznar added, the EU remains interested in reaching an agreement by October.

Mercosur negotiators claim that they made offers in the areas of government procurement and services in April, while the EU has not made counteroffers.

Aznar disputes that point of view. In an exclusive interview with the Agencia Brasil, he says that no offers were officially exchanged. He points out that the South American offers "were not equivalent to what the EU was willing to do in the agricultural area." Aznar declared that "the EU is willing to make an important offer for the agricultural area the moment Brazil improves its offer in the areas of investments, services and government procurement."

Aznar went on to say that market access is just one aspect of the agreement the EU wants to reach before establishing the free trade agreement. "The negotiations sit on three pillars: the political, the commercial and cooperation. From Mercosur's point of view, commerce is the most important because the EU is its biggest trade partner. From our point of view, all three areas are of great interest. We want an agreement that is as broad as possible," he said.

In fact, Mercosur accounts for only 3% of total EU trade. In light of that fact, the EU is interested in going beyond import quotas - the point that is of greatest interest to Mercosur - to sanitary regulations for imports, protection of intellectual property, government procurement, opening of the energy market and manufacturing, and access to investments.

"This is not a free trade agreement like the FTAA, for example. The political and cooperation pillars will be very important, as well. We want scientific-technological exchange programs and understandings in the political area, as well," said Aznar.

Translator: Allen Bennett