Brasília - Even though last week's conversations between Mercosur and the European Union ended in failure, Foreign Minister, Celso Amorim, says he still believes the two economic blocks will reach an agreement on schedule by October. Amorim explains that following a Mercosur proposal the Europeans backpedaled on some essential points and the talks ended.

"We have a large strategic interest on both sides in moving ahead with the negotiations, but we also need a minimum balance in short-term benefits and we just do not think that what was on the table was sufficient," said Amorim.

What the EU put on the table was an offer to introduce quotas over a ten-year period for meat from Mercosur, with the total gradually rising to 60,000 tons. The first year quota would be 6,000 tons (with Brazil's share being 2,000 tons). Mercosur considered that insufficient.

Amorim said he was disappointed by the EU offer, but said Brasilia did not break off negotiations. The government intends to discuss the matter with the domestic farm sector and return to the negotiating table.

Both Amorim and Miguel Angel Moratinos Cuyaubé, the Spanish Foreign Minister who made an official visit to Brazil last week, declared that they remain optimistic about a final agreement being reached in October.

Agência Brasil
Reporteres: Gabriela Guerreiro e Iolando Lourenço
Translator: Allen Bennett
26/07/2004