News Release
No. 132/04
September 30, 2004
EU-MERCOSUR: EU PRESENTS ITS COMPLETED OFFER TO MERCOSUR
IN ON-GOING TRADE TALKS
In the on-going negotiations for an EU-Mercosur
Association Agreement, the EU has today sent Mercosur a completed offer. This
offer matches the approach and the level of ambition in the offer which Mercosur
sent the EU on Friday 24 September. The offer proposes a gradual liberalisation
of Mercosur exports of industrial and agricultural goods to the EU, the opening
of its services market, access to a public procurement market worth €200 billion
as well as non-discriminatory rules for Mercosur investors in Europe.
The presentation of the offer follows the calendar agreed between the EU and Mercosur
(Brazil, Argentina, Paraguay and Uruguay) on 12 September. Today’s move shows
the EU’s commitment to creating the world largest free trade area covering 650
million people. Mirroring Mercosur’s approach, the EU offer remains valid until
31 October 2004. The EU now hopes that both parties can evaluate the respective
offers in order to decide whether or not the negotiations can be concluded by
31 October.
The EU completed offer in details:
Goods: the EU proposes to eliminate practically all tariffs on imports of industrial
goods from Mercosur. Sixty-five percent would be immediately eliminated upon entry
into force of the agreement. Only 9% will be eliminated at the end of the ten-year
transition period. The EU proposes to fast-track elimination of its tariffs in
a clear recognition of the principle of special and differential treatment for
the Mercosur block.
The EU also proposes to eliminate or reduce tariffs on substantially all agricultural
imports from the Mercosur. On a small number of sensitive products for the EU,
the offer proposes Mercosur access to the EU market by means of important quotas.
The EU is ready to give Mercosur better access to imports of processed agricultural
products, a sector with important export potential by Mercosur, provided adequate
protection for EU geographical indications is granted.
Services: The EU gives access to Mercosur service providers to basically all commercial
services sectors in the EU. These sectors represent between 50-55% of the EU GDP.
Investments: The value of the EU total stocks is around €350 billion. The EU offer
goes beyond the EU commitments in the WTO agreement on services (GATS).
Public procurement: The EU gives Mercosur access to a market worth €200 billion.
The EU reserves the opening up of the food and beverages sector, textiles and
clothing and aeronautical sectors to improvement by Mercosur of its offer.
The offer contains a number of general conditions which the EU believes are essential
to advance in the negotiations. The conditions are, among others: ensuring that
EU goods will circulate freely within the Mercosur block without being subject
to internal customs duties; prohibition of duty drawback; adequate protection
of EU geographical indications and elimination of export duties. The EU believes
that the issues of domestic support to the agricultural sector is an issue which
needs to be addressed in the on-going WTO
trade talks and not at the bi-regional level.
For more information:
http://europa.eu.int/comm/trade/issues
/bilateral/regions/mercosur/index_en.htm
Press Contacts: |
Anthony Gooch
202-862-9523
|
Maeve O'Beirne
202-862-9549
|
