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7/18/13

Brazil blames Argentina for delays in EU free trade accord

Brazilian agribusiness leaders are blaming Argentine government policies for delays in concluding a free trade deal with the European Union -- an accusation has come from Brussels as well.

EU negotiators reported frustration in attempts to advance negotiations that both sides see as timely, leading to a deal that will benefit both sides.

German Chancellor Angela Merkel pushed for EU-Latin America free trade talks. A free trade deal with Latin America's largest trade bloc, Mercosur, is seen in Brussels as a potential way out of recession for some of the EU's hard-pressed economies.

Mercosur's impressive demographics and cumulative growth figures are strong stimulants for EU nations seeking new business opportunities. The region has a population of about 276 million and total earnings of $3.47 trillion. An average per capita income of $12,599 translates into a burgeoning consumer market with unrivaled potential, analysts said.

Mercosur founding members are: Argentina, Brazil, Paraguay, Uruguay. Venezuela, Associate Member since 2008, became a full member in July 2012. Bolivia and Chile are associate members and Colombia, Ecuador and Peru want to join.

Paraguay's membership is suspended because of Mercosur diplomatic wrangles over a June 2012 government change the regional bloc denounced as a coup. Other regional organizations including the Organization of American States in Washington, disagree over Mercosur's diplomatic isolation of Paraguay.

Brazil blames Argentina for delays in EU free trade accord - UPI.com

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