EU-MERCOSUR Interregional Association Agreement on Track

 
The EU-MERCOSUR Biregional Negotiating Committee met for its fifth session in early July in Montevideo. The purpose of this negotiating round is to work out an interregional association agreement to liberalize trade between the two trading blocs. Both sides opened the meeting with statements of support for the negotiating process and a desire to make progress.

Among the most significant developments at the meeting was the EU's tariff offer and negotiating texts for goods, services and government procurement. The intent is to liberalize all trade, without excluding any sectors, in a progressive and reciprocal manner over 10 years. MERCOSUR pledged to present its negotiating proposal soon. The next negotiating session is scheduled to take place by the end of October.

Representatives of the two blocs discussed the institutional framework of a future agreement, and the parties agreed on most of the points of a joint text with expectations of resolving the remaining points during the sixth round. An association council will be formed to supervise the implementation of the agreement. The council will consider bi-regional and international issues, as well as proposals for improving the agreement. It will be chaired alternately by a member from the EU and MERCOSUR, assisted by an association committee which will meet annually at least.

A joint consultative committee is to be formed to promote greater communication between the civil societies of the two regional blocs. In addition, the EU and MERCOSUR are seeking ways to deepen their political dialogue. To this end, two subgroups-on economic cooperation and social and cultural cooperation-exchanged texts.

Major breakthroughs are not expected until the negotiating process receives a jolt from the meeting of the heads of state now scheduled for June 2002 in Madrid.