The full Mercosur members are Brazil, Argentina, Uruguay and Paraguay. Last week the EU Trade Commissioner and head of the negotiations’ trade affairs, Karel De Gucht said in Uruguay that the attempt to sign a partnership agreement, which includes a trade agreement, have moved forward fast. He added that the bloc wants the agreement to be signed this year.

But France is concerned about the consequences that this agreement might have on its farmers. “If we want a fair trade agreement between the EU and Mercosur, it cannot be signed turning our backs to the European farmers. It should be made based on the same rules applied to both parties”, said yesterday by the French Minister of Agriculture, Bruno Le Maire, cited by AFP.

The European Trade Commissioner visited Uruguay’s capital, Montevideo on February 8 and 9, where he met with several government representatives. Uruguay will be the interim president of Mercosur in the second half of this year. Uruguayan newspaper El País, reported De Gucht said in his official visit that the rhythm of the negotiations to reach a free trade agreement between Mercosur and the EU is “unusual” and that he expects the agreement to be signed briefly.

In a press conference, the European representative said he strongly believes that both parties are in condition of reaching an agreement. But he admitted that “it will not be easy”. “The political timing is good because there is a growing belief in Europe that we should become closer and work together”.

De Gucht said that the two regions should unite to face the growth of the Chinese economy, but he added he is not afraid of that country’s growth. He explained that if an agreement between the EU and Mercosur is reached, the two blocs will make up a market of 700 million high and medium income consumers, which would be the world’s largest purchasing power. “This is a good business if we manage to pull it through”, said De Gucht.

Meanwhile, the head of Economic, Integration and Mercosur affairs of the Uruguayan Foreign Affairs Ministry, Alvaro Ons, told El Pais that “there is a commitment” of Mercosur and the EU to close a deal “at some point in the second half of this year”. The plan is to reach a “balanced agreement, with a high degree of tariff liberation”.

Despite the optimism expressed in Uruguay by both blocs, the negotiations are still in their initial stage and follow closely the strong position of some European countries led by France, which are reluctant to the gradual elimination of subsidies to agriculture production.

The EU and Mercosur are expected to have new negotiations meetings in March in Brussels, Belgium and in May in Asuncion, Paraguay.

The negotiations that aim to reach a free trade agreement between the two blocs began in 1996, but were interrupted in 2004. After six years of standstill, the negotiations were relaunched in May of 2010.

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