Trade ministers from the Andean Community meet in Lima on Monday to evaluate the status of negotiations with the southern hemisphere common market, or MERCOSUR, on the creation of a free trade zone between the two Latin American blocs.

The meeting comes after the two trade blocs' negotiating panels failed two weeks ago to hash out a preferential tariff agreement to be used as basis for the creation of a free market area beginning 2000.

Negotiators for the Andean Community (Bolivia, Colombia, Ecuador, Peru and Venezuela) have described the talks with MERCOSUR as "difficult and tiring," as well as "complex."

On March 30, the Andean Community agreed to negotiate a free trade deal with Brazil and revise tariff preferences on Argentina and Paraguay.

These three countries, along with Uruguay, compose the MERCOSUR.

Negotiators had given themselves until March 31 to agree on tariff preferences and had planned to present details of a free trade zone this month to facilitate the signing of a final agreement by the end of the year.

But following a meeting between MERCOSUR and European Community representatives, Argentina and Uruguay proposed instead to extend the current preferential tariffs scheme until the end of the year.

Brazil has proposed to negotiate a free trade agreement with the Andean Community within three months.

Last week, Andean Community Secretary General Sebastian Alegrett said agreements with Brazil would open up new opportunities and help speed up the forging of an agreement.

Andean Community Director Victor Rico recently announced in Lima that a first round of negotiations with Brazil would likely begin in April and last for three months.

He added that the Andean Community would also be willing to negotiate individually with Uruguay, Argentina and Paraguay and stressed that his bloc has no intention of stalling the talks.

He said talks with Brazil would be proof of his bloc's willingness to negotiate.

Attending the Andean-MERCOSUR talks in Lima are Colombian Trade Minister Marta Lucía Ramirez de Rincon, Bolivia's Jorge Crespo, Ecuador's Hector Plaza, Peru's Cesar Luna Victoria and Venezuela's Gustavo Marquez.

Ramirez de Rincon is to chair the meeting.

The ministers are also to evaluate a proposal to offer support to speed up free trade between Peru and Ecuador. Other issues include preparations for the 30th anniversary of the Cartagena Agreement on May 26 and for the 2nd Andean Business Forum. (EFE)