Brasília, 5/7/2004 (Agência Brasil) - An August meeting of the Biregional Negotiating Committee (CNB) for a Mercosur-European Union free trade zone will be held in Brasilia.

Meanwhile, this month, between the 19th and 23rd, the CNB will meet in Brussels for a discussion of technical issues.

Mercosur and the EU are discussing a wide range of items. Mercosur is mainly interested in lowering European barriers on imported farm produce. The EU seeks to open markets in the areas of services, government procurement and investments.

"I am cautiously optimistic," says Jorge Peydro-Aznar, the EU Commercial Affairs counsel. "Both sides desire to close a deal, but it will depend on the negotiations. It may be possible to reach an agreement by October, and it may not be possible. We will do the best we can."

The EU has shown a willingness to increase imports of beef, chicken, pork, garlic, bananas, corn, sorghum, powdered milk, butter, cheese, wheat, rice and ethanol, along with processed foods.

Repórter:Gustavo Bernardes
(Translator: Allen Bennett)