Brasília – In an attempt to reach an agreement with the European Union before the October 31 deadline, Mercosur has presented the EU with an improved proposal that, according to an official note from the Foreign Ministry, expands market access for the EU in the areas of agriculture, industry, investments, services and even government procurement.

The latter two areas, services and government procurement, are considered sensitive by Brazil. Even so, the new proposal offers greater access in the telecommunications and financial segments. As for government procurement, according to the note: "the Brazilian government seeks to preserve its industrial and social policies while granting the possibility of preferential treatment for European suppliers."

According to the ministry, the new proposal "is an important advance in the negotiations" for a free trade agreement between the two economic blocks and shows that Mercosur is fully engaged in seeking a rapid and successful outcome.

In return, says the note, Mercosur expects expanded and immediate access for its farm goods to the EU market. That such access is constant and can be further expanded in the future. And, finally, that Mercosur services providers can obtain access to the EU market.

Agência Brasil
Translator: Allen Bennett
09/27/2004