The EU is to restart free-trade talks with the Mercosur
group. If these are successful there could be big impacts on some
EU commodity markets – especially meat.
Mercosur (Mercado Común del Sur in Spanish, or
Southern Common Market) comprises four South American countries:
Brazil, Argentina, Uruguay and Paraguay. Venezuela is negotiating
to become the fifth full member; other South American states are
associate members. The agricultural industry within this trade
block is large and competitive.
Free-trade talks between the EU and Mecosur began in 1999, but
have been on hold since October 2004 as the two sides failed to
bridge their differences. With the Doha World Trade Organization
round going nowhere fast, attention has turned to these types of
'bilateral' agreements as a way of increasing trade and
boosting economic recovery.
